Should You Worry About Market Turbulence?

We’ve had a bumpy ride in the markets recently. Below are our thoughts on market volatility and what to expect.

Don’t panic. Volatility is normal and expected. 

Corrections like the one we are currently enduring are a normal feature of the equity markets. The fact that we’ve had two corrections in 2018 does not indicate anything other than the markets are returning to normal levels of volatility.

The global economy continues to look supportive for risk asset prices. 

Though global growth is decelerating, we are still a little way off from the next recession in our highest probability scenario. While the downside news is well understood, one upside surprise could be that the US and China arrive at a trade deal. This would cause global equity markets to move higher.

Count on more volatility in the coming year. 

Since early in 2018, we’ve been advocating that clients consider reducing risk (incrementally) in their portfolio. Even with the equity market off its high, the appreciation in equities over the last 10 years has been significant. It’s almost impossible to top-tick the market, so don’t be concerned with reducing risk now that equity markets are more volatile.

Have you asked your Wealth Advisor to help you manage volatility in your portfolio?    It’s not too late.


Gratus Capital is an SEC-registered investment advisor. Registration with the SEC does not imply any level of skill or training. Our ADV documents are available upon request. The opinions expressed are as of November 2018 and may change as economic conditions vary. The information provided is not intended to be relied upon as specific investment advice and is not a recommendation, offer or solicitation to buy or sell any securities. No graph or chart by itself can be used to determine which securities to buy or sell or when to buy or sell them. As with any investments, past performance is not a guarantee of future results. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.