Views on Volatility
Five J.P. Morgan experts share their thoughts on dealing with rocky markets
With interest rates rising and the economic cycle maturing, many investors are now experiencing higher volatility for the first time in years. We asked five J.P. Morgan experts, each with different perspectives, to share their views on what to know and do when the road gets rocky.
“You can’t control volatility, but you can control how you react to it.”
Long-term investors shouldn't overreact to short-term volatility
S&P 500 intra-year declines (max drawdowns) & calendar year returns
Despite average intra-year drops of 13.8%, annual returns were positive in 29 of 38 years.
Dollar cost ravaging - timing risk of withdrawals
Growth of an investment (1966-1995)
Rate of return: average vs. actual (1966-1995)
Savings alone won't pay for college
Next Steps: Put These Ideas into Action
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The views and opinions expressed in this material are those of the featured J.P. Morgan Chase & Co. (“J.P. Morgan”) employee and do not necessarily reflect the policies or positions of JPMorgan Chase & Co. The material is provided for informational purposes only and is designed to provide general market commentary. It does not constitute J.P. Morgan research nor should it be considered a recommendation of a particular investment strategy or an offer or solicitation for the purchase or sale of any financial instrument. Opinions and estimates offered constitute the featured J.P. Morgan employee’s judgment as of the date of this material and are subject to change without notice as are statements of financial market trends, which are based on current market conditions. J.P. Morgan believes the information provided here is reliable, but do not warrant its accuracy or completeness. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation for any particular action.
Investing involves market risk, including the possible loss of principal. Investments in international or emerging markets can be more volatile and involve a greater degree of risk. Not all investments or strategies are suitable for all investors and there is no guarantee that a particular investment objective will be achieved. Past performance is not a guarantee of future results. You should speak to your financial advisor before making any investment decisions. J.P. Morgan and its affiliates do not provide legal, tax or account advice so you should seek professional guidance if you have questions.
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