Volatility Tests Your Mettle
 – Presented by Mark K. Lund, Investment Advisor

Some changes may be unsettling.

Most people understand that stock prices don’t go straight up. But when market volatility increases, the price action can test the mettle of even the most seasoned investor.

In recent weeks, stock prices have trended lower with a few eye-popping, one-day rallies as the financial markets appear to adjust to higher interest rates on long-term Treasuries. Since the beginning of the year, we’ve seen a jump in the yield of the 10-year treasury.1

While investors recognize that economic strength may lead to higher bond yields, it’s the speed at which bond yields increased that has proven unsettling. Generally speaking, when yields rise, bond prices tend to fall.

It’s uncertain what’s next for stock prices, but it’s possible the current downtrend could take certain market indexes into a correction, meaning a decline of 10% or greater from a recent high. The Nasdaq market has flirted with correction territory as the rising bond yields have upended some high valuation growth stocks.2

But by comparison, the Standard & Poor’s 500 index has seen a modest pullback from its closing high set on February 11, 2021. The Dow Jones Industrial Average set an intraday record high in recent trading.2

What matters is what you do next. Typically it’s best to ignore the short-term price swings. Remember, you craft your investment strategy to help pursue your long-term goals, regardless of what the markets do from day-to-day.

You’re always welcome to give me a call with your questions. Rest assured, we’re keeping a close eye on the financial markets.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11650 S. State Street, Suite 360
Draper, UT 84020

Citations
1. CNBC.com, March 8, 2021
2. CNBC.com, March 5, 2021

This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary, Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Fiduciary Report. Cities served in Utah are: Salt Lake County, Utah County, Park City, Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork.

Category: Articles, Blog

About the Author ()

Mark K. Lund is the author of The Effective Investor, a #1 Best Seller, and founder of Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisory firm. He has provided articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be a successful investor. Get a free copy when you schedule your initial consultation.

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