Drops like yesterday’s 4% decline can be unnerving for someone who is heavily invested in stocks, with little or no diversification. The research firm Schroders has a research piece putting yesterday’s drop in perspective. It can be summarized by the following table:
The 10 Worst Days For the S&P 500 Over the Past 30 Years
Will history repeat? No way to know exactly. But at the moment, the economic outlook still looks favorable, and that is really important.
Our diversified approach served us well yesterday. While the world of stocks fell by roughly 4%, not so for bonds or gold. Our All-Weather accounts declined by a bit over 1%. That’s how it is supposed to work.
The entire Schroder post can be found here, if you’re interested: