Dimensional Fund Advisors: Recent Market Volatility

February 13, 2018 in Dimensional, Evidence-Based Investing, Investing by Sheri Iannetta Cupo

Recent Market Volatility

February 2018

“While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing”

After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From February 1–5, the US market (as measured by the Russell 3000 Index) fell almost 6%, resulting in many investors wondering what the future holds and if they should make changes to their portfolios. While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.

Read the latest DFA post and watch the accompanying Recent Market Volatility video below.

Sheri Iannetta Cupo, CFP®, Founding Partner (Retired) & Director

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