Volatility and the Gut Check


It’s here. The long discussed volatility is here! Months and years go by, and you patiently listen as we discuss the inevitable rough patches with investing, when market volatility spikes and corrections occur. We talk about market declines because we’re seeking an advance “gut check” from you, in an attempt to gain some insight into how you would feel when markets pull back. The pace of this recent string of down days has certainly grabbed many investors’ attention and sometimes makes one question if they are properly positioned. When markets begin declining, sometimes investors struggle to remember that these days were thought of in advance and planned for and, instead, begin hovering over the “exit” button.

For reference, we’ve inserted this link to a letter we sent to clients on October 21, 2008. On that day, the Dow Jones Industrial Average (DJIA) was down 229 points, closing at 9,034. Today the DJIA was down 530 points to close at 16,460, finishing out is worst weekly pull-back since 2011. The highlighted comments in this letter from 2008 are just as applicable today as they were back then.

In addition, the graph above shows the S&P 500 index and DJIA levels from October 21, 2008 through today. The upward trajectory should demonstrate that investing success favors those who maintain a long-term focus, those who can ride out bumps in the market, and those who are motivated by long-term reward rather than fear of short-term weakness.

We also want to provide access to some of our past blogs as a means of reminding you to maintain a long-term perspective.




Market volatility is unsettling, but the real harm comes from bad behavior by investors (i.e. allowing fear or greed to drive investment decisions). Volatility is a friend to the long-term investor who operates with discipline. We are here for your questions and are happy to talk through the current market environment.

Want to learn more about our disciplined investment approach?

Published: August 21, 2015






The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

Contact Our Offices

Payne Wealth Partners, Inc.
Keystone Financial Consulting
601 N Cross Pointe Blvd
Evansville, IN 47715
Phone: 812-477-6221
Toll Free: 888-477-6221
  • YouTube
  • Follow us on twitter
  • Follow us on facebook
  • Follow us on linkedin
  • GooglePlus

FREE Financial Planning Guides and other exclusive content!

Get instant access to download all our current - and future - informational whitepapers and guides plus join our mailing list to receive the latest Payne Wealth blog posts. 

SUCCESS! Please check your e-mail inbox for your access link and password.