Volatility Tests Your Mettle
Mar 15, 2021
Most people understand that stock prices don’t go straight up. But when market volatility increases, the price action can test the mettle of even the most seasoned investor.
In recent weeks, stock prices have trended lower with a few eye-popping, one-day rallies as the financial markets appear to adjust to higher interest rates on long-term Treasuries. Since the beginning of the year, we’ve seen a jump in the yield of the 10-year treasury.
While investors recognize that economic strength may lead to higher bond yields, it’s the speed at which bond yields increased that proven unsetting. Generally speaking, when yields rise, bond prices tend to fall.
It’s uncertain what’s next for stock prices, but it’s possible the current downtrend could take certain market indexes into a correction, meaning a decline of 10% or greater from a recent high. The Nasdaq market has flirted with correction territory as the rising bond yields have upended some high valuation growth stocks.2
But by comparison, the Standard & Poor’s 500 index has seen a modest pullback from its closing high set on February 11, 2021. The Dow Jones Industrial Average set an intraday record high in recent trading.2
What matters is what you do next. Right now, it may be best to ignore some of the short-term price swings. Remember, you craft your investment strategy to help pursue your long-term goals, regardless of what the markets do from day-to-day.
You’re always welcome to give me a call with your questions. Rest assured, we’re keeping a close eye on the financial markets, and most importantly, watching for any new long-term trends that may emerge on your behalf.
For more insights and resources, be sure to sign up for our Weekly Market Commentary. Follow our YouTube channel where we regularly post our Epic Market Minute videos. Follow us on LinkedIn, or like us on Facebook. And as always, please don’t hesitate to reach out to a dedicated service professional at Epic Capital.
Tags: Current Events, financial advisor charlotte nc, Investing, Investment Planning, Investment Portfolio, Investments
More Insights
Apr 4, 2025
April showers came a month early as stocks fell in March. Tariffs were the primary cause of the market jitters, although that uncertainty became too much for markets to shrug off once economic data started to weaken.
Apr 2, 2025
A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully.
Mar 31, 2025
Losing a spouse is a stressful transition. And the added pressure of having to settle the estate and organize finances can be overwhelming. Fortunately, there are steps you can take to make dealing with these matters less difficult.
Mar 28, 2025
Families are one of the great joys in life, and part of the love you show to your family is making sure that their basic needs are met. While that’s only to be expected from birth through the high school years, many households are helping their adult children well into their twenties and beyond at … Continue reading “Retirement and Adult Children”
Mar 26, 2025
Life insurance can be an excellent tool for charitable giving. Not only does life insurance allow you to make a substantial gift to charity at relatively little cost to you, but you may also benefit from tax rules that apply to gifts of life insurance.
Top of Page
Services
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >
Find us on:
Copyright © 2025 Epic Capital Wealth Management. All Rights Reserved.
Securities offered through LPL Financial. Member FINRA/SIPC.
The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: CA, CO, DC, DE, FL, GA, IN, LA, MD, MO, MS, NC, NJ, NY, PA, SC, TN, TX, VA, VT, WA.