via Lockton Retirement Services
What is Happening?
- The stock market declined approximately 10% over the last three weeks (as of 08/24/15).
- Emerging market losses have been greater, most notably in China.
- The VIX Volatility Index, also known as “The Fear Index,” spiked which is typical during market sell-offs.
- The sell-off seems very similar to the two summer sell-offs of 2011 and 2012
Markets seem likely to break their 10-quarter long streak of consecutive gains. Volatility spiked in recent weeks and stock markets around the world are seeing sharp declines. Although investors have benefited from the last five years of very high returns and very low levels of volatility, such a streak isn’t normal. In fact, there have only been four other periods of time, since 1929, when the market produced more than 10 consecutive quarterly gains..
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