By Roy Hayhurst, GuideStone Fianancial Resources public relations DALLAS, Texas - As stock markets continue their record-setting ways, it’s important to remember, as Wall Street wisdom reminds: “Trees don’t grow to the sky.” Volatility may be around the corner for the financial markets, which have grown feverishly since the election of President Donald J. Trump in November 2016 and continued through his inauguration and have continued into 2018. By way of example, during 2017, all three major equity market indices — the Dow Jones industrial average, the S&P® 500 and the NASDAQ — set record highs more than 60 times. The S&P 500 climbed 21.83 percent, the Dow Jones industrial average climbed 28.11 percent and the NASDAQ climbed 29.64 percent. “Volatility was incredibly muted in 2017,” said David S. Spika, CFA, chief strategic investment officer of GuideStone Financial Resources. “There is a market precedent for volatility to soon increase. This period has been the longest period without a 5 percent correction in history. In fact, 5 percent pullbacks have occurred, on average, three times a year since 1928.” Retirement plan participants should not see volatility as a reason to flee markets, but to ensure they … [Read more...]
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