Review the latest Weekly Headings by CIO Larry Adam.
Key Takeaways
- Pullbacks Are Part Of The Fabric Of The Market
- Timing The Market Is A Difficult If Not Impossible Feat
- Rebalancing Is Critical In Maintaining Risk Profile
From school bells to the bells of New York Stock Exchange—the ringing of bells often signifies the beginning and/or conclusion of an event. Unfortunately, there is no distinctive bell to signify the beginning of a meaningful equity market rally or pullback. Keep in mind that few foresaw the swift COVID-induced 34% decline last year and even fewer saw the unprecedented ~100% rally since last March. In fact, this S&P 500 bull market is the best on record at this juncture, outperforming all previous bull market runs by at least ~40%. While timing the stock market precisely is a challenging, if not impossible feat, there are techniques investors can employ to maximize their long-term performance, which are discussed below. As calls for a potential pullback ring louder from many pundits, it is essential to put volatility into perspective and address what steps you should or should not take when one occurs.
