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  • Guest Post: Rayhon's Financial Solutions: Market Volatility

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    Guest post by member Rayhon's Financial Solutions
    Putting things into perspective 
    Negative market response to health crises is not new. In fact, since 2003 there have been several different epidemics that caused short-term disruption and panic in the financial markets. The good news is that in nearly every case they were relatively short-lived, and as you can see from the chart below, the S&P 500 experienced sizable gains over the months immediately following the downturns. While there is no guarantee the market will rebound in this current situation, historically negative market responses to these types of healthcare crises have been temporary dips.
    Historical view of market performance during epidemics* 
    *Source: Dow Jones Market Data, as cited on foxbusiness.com, January 27, 2020. Stocks are represented by the Standard & Poor's 500 price index. Returns reflect the change in price, but not the reinvestment of dividends. The S&P 500 is an unmanaged index that is generally considered to be representative of the U.S. stock market. Returns shown do not reflect taxes, fees, brokerage commissions, or other expenses typically associated with investing. The performance of an unmanaged index is not indicative of the performance of any particular investment. Individuals cannot invest directly in any index. Actual results will vary. Past performance does not indicate future results. 
    *End of month during which early incidents of outbreak were reported. 
    **H1N1 occurred during the financial crisis, when, as during other periods, many different factors influenced by  
    market performance. 
    Strategies that can help you stay calm through the storm 
    Market volatility can be unsettling and increase anxiety. While no one can predict what the market will do and when, making decisions based on panic rarely plays out well in the long term. In these challenging times, we must find a balance in the way we live and invest to take advantage of the inevitable progress of science and in financial markets while managing the probability of short-term disruptions. That’s why it’s important to focus on your long-term goals as well as asset allocation and rebalancing based on goals, time frame, and risk tolerance.
    * Investment adviser representative and registered representative of, and securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC)
    *Rayhons Financial Solutions, LLC is not a subsidiary of nor controlled by Voya Financial Advisors.
     *Rayhons Financial Solutions, LLC is not a broker/dealer nor a registered investment adviser.

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