In a Volatile Market, Keep Your Bearings

Last week’s market decline continued today, as the Standard & Poor’s 500 stock index fell .6%, to 1,989.63. Today’s losses, in which all 10 sectors in the index lost ground, followed a 3.5% decline in the index last week. That was the index’s largest decline since May 2012. Sharp little shocks like this are the…

The Power of Compounding

If you lived through the 1970s, you probably know the visceral fear that accompanies the word “inflation.” During that “Great Inflation” period, the rate of price increases surged to double-digit levels—reaching 14% by 1980. Businesses were destroyed; household budgets were shredded. Only by raising interest rates to a painful 20% did the Federal Reserve manage…

Lessons From the Market Correction

The stock market’s recent shakeout may have rattled investors – but the only permanent damage was to those who lost their nerve and pulled their money out. Like all bouts of market volatility, this one underlined the importance of having a plan and sticking to it. On September 19, the Dow Jones Industrial Average closed…