Over the past month, we’ve seen a lot of volatility in the stock market, including a 1,000-plus point drop for the Dow Jones Industrial Average (DJIA). I, along with my team, are monitoring the situation closely to ensure your portfolio continues to be well-positioned.
By Ron Lieber
We’ve been here before. Stocks can fall fast and bounce back hard, even if they haven’t moved all that much or that quickly in recent years.
Favorable economic indicators and encouraging corporate earnings reports helped propel stocks forward in July. Market growth has come despite trade wars between the United States and other trade partners, particularly China.
Despite a sell-off on the last day of the month, equities held enough of their gains to post mostly positive month-over-month returns. The Trump administration imposed tariffs on steel and aluminum imports on Canada, Mexico, and the European Union.
April was marked by the impending tariff war between the United States and China. Tensions between the world's two largest economies certainly affected stocks both home and abroad. Escalating strife in Syria posed an additional reason for investors to be concerned.
The first quarter of 2018 began as the fourth quarter of 2017 ended: with strong market gains. The Nasdaq led the way by the end of January, posting a monthly increase of almost 7.40%, followed by the large caps of the Dow (5.79%) and the S&P 500 (5.62%).
After reaching all-time highs on January 26, 2018, the Dow Jones Industrial Average and the S&P 500 went into a two-week slide that saw both stock indexes drop by more than 10%, a decline that is typically considered a market correction.1
The second quarter provided a bumpy ride for investors.
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