In the last 5 years, the stock market has shown some attractive returns. In 2010, the Dow Jones was at about 11,000 points, and in 5 short years, it blew up to over 17,500. But what about the years before 2010? In 2008 investors were sitting pretty at around 14,000 but in a little over a year it crashed to under 7,500. That?s nearly 50%.
These are things to think about when dealing with your clients’ investment portfolios. A market correction like we saw in 2002 and 2008 could ruin their portfolios by 40% or more. Take this opportunity to encourage ?your clients to review their current asset allocation considering their risk tolerance as well as goals and objectives. Nobody knows if and when a correction is coming. If you take a look at the volatility and market action in the last couple of months, you might wonder if a correction could be on the horizon.