The past few days and weeks have been extremely difficult for investors as world equity markets have experienced significant declines and the threat of a global recession looms large. The S&P 500 ended the week today down 9.1% and the NASDAQ 100 has entered bear market territory having fallen over 20% since its high on December 16, 2024.
We recognize how unsettling this can be, and we want to assure you that periods like this—while difficult—are not unprecedented.
Recall Black Friday in 1987, the Great Financial Crises of 2008-09, and more recently the COVID-19 pandemic in 2020. Volatility and the resultant swings that come with uncertainty are a part of investing. More directly, it is why you earn a risk premium. Despite the negative portfolio impact of major downturns, investing in fixed income and equities has stood the test of time as a path for investors to grow their wealth.
So, what is an investor to do? We encourage you to stay calm, do not do anything rash, and focus on your long-term financial goals. It's during times of uncertainty that staying disciplined matters most. Reacting impulsively to market downturns will often do more harm than good.
Symmetry’s globally diversified portfolios and long-term strategic focus are built to help weather moments like these. While global and U.S. equities have suffered, the impact on more concentrated portfolios such as the NASDAQ 100 and the “Magnificent Seven” has been much worse.
Our portfolios have also benefited from the solid performance of U.S. and global investment grade bond markets as well as from global equity diversification, as international equities have also fared far better than U.S. equities.
Remember you must be in the market to earn market returns. Thank you for your continued trust and confidence.
Warm Regards,
David Connelly, Jr.
CEO, Symmetry Partners
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