Market Volatility Returns

A favorite quote of ours at Legacy (and we love quotes) is “short-term volatility is the cost to participate in the stock market’s long-term gains.” It’s our way of acknowledging that selloffs, corrections and even bear markets are not just normal – they’re a part of the process of being a long-term investor. If there were no volatility or risk, there would be no reason for stocks to perform so well over the long run. These inevitable moments in time will ultimately prove to be a blip on the radar for long-term investors.

While we can’t control how the markets move day-to-day, what we can control is our emotions. Reacting emotionally to market volatility is likely to be more detrimental to portfolio performance than a drawdown itself; thus, the importance of maintaining perspective and identifying the drivers of the current equity market pullback. Last, but not least, it is always important to maintain perspective when listening to financial media outlets; they often focus on broad indexes such as the S&P 500 Index. Legacy’s portfolios are diversified within and across asset classes that don’t all move in the same direction nor magnitude.

With volatility comes opportunity. Legacy’s Investment Committee will be keeping a keen eye on potential opportunities to purchase high quality assets at a discount.

click here to read the full “drivers of recent market volatility”

If we equal-weight indexes by giving each constituent company the same percentage regardless of size, it becomes obvious how much a few giant US companies are changing perceptions. What comes as a surprise to many is that on an equal-weighted basis, the total return on MSCI’s index for Europe has actually outperformed its US Index since the beginning of 2023.

Legacy Trust Family Wealth Offices

4200 Marsh Landing Blvd, Suite 100

Jacksonville Beach, FL 32250

Office: (904) 280-9100

Fax: (904) 280-9109

Legacy Trust Family Wealth Offices of Jacksonville Beach, Florida, is a new type of financial services firm - an independent multi-family office - that brings all facets of your personal financial affairs under one roof, where they are coordinated for optimum efficiency and maximum performance.

Investment products are not FDIC insured, are not bank guaranteed, and may lose value.