Finding Perspective Amid Turbulence

2019 Investing Outlook

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By Cleo Chang - February 8, 2019

There probably are investors still waking up in a cold sweat after having nightmares about the stock sell-off in December. As I’m sure you remember, it was quite volatile.

But let’s take the emotion out of it for a moment and look at the volatility from a purely numbers standpoint: from September 21 through December 26—from the intraday peak to the trough—the S&P 500® Index was down about 20 percent. You might be thinking that we have to go all the way back to 2008-2009 to find such a selloff; but in fact, we saw one like that in 2011. And as you know, not only did we avoid a recession eight years ago, we recovered to watch the equity markets surge to levels they had never experienced before.

I point this out because we often get too caught-up in the real-time emotion of market selloffs, and a little perspective can go a long way.

Check out my latest video to hear my thoughts on the U.S. Federal Reserve’s interest rate tightening. You might be surprised to find out how this rate increase cycle compares to others historically.

Transcript

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    Finding Perspective Amid Turbulence

    Head of Investment Solutions Cleo Chang analyzes possible performance drivers in a volatile 2019 and market reactions to similar selloffs in the past.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.