HCR Wealth Advisors Gives Their Take on Volatility
One of the many sources for information about the economy, the financial markets, and current trends are the numerous blogs operated by many of today’s top financial gurus. Even without doing any business with them whatsoever, you can still benefit from the sound advice and opinions that only come from a mixture of education and experience.
The number of blogs like this is just too numerous to count, but for today let’s look at a piece from the website of the investment advisory firm HCR Wealth Advisors. The firm recently posted an excellent piece on market volatility trends over the last year.
HCR Wealth Advisors is a registered investment advisory firm founded in 1988, specializing in providing advice and services to help clients reach their financial goals. Their company mission is to establish relationships with clients based on education, trust, and service. Much of what they do is geared towards guiding their clients towards the path to financial success. HCR Wealth Advisors also seeks to protect its clients from all risk. Apart from this, they educate clients on sound investment strategies that work for the modern world.
So, to understand this blog article, you must understand what “pullback” is. Pullback is a term that is used when a certain stock drops below its peak and begins a downward slide. The textbook definition is: “A pullback is the falling back of a security’s price from its peak.” Most of the time, the volatility of the market is measured by looking at pullback rates.
HCR Wealth’s article talks about 2017, and how it was a year with record lows in volatility. The largest stock market pullback in 2017 was only about -3%. This is a historically low rate. Looking at stock market data reveals that yearly pullbacks in the double digits are typically the norm. But the low pullback in 2017 is said to have happened because of a significant amount of earnings growth that helped to stimulate the economy. Contact HCR Wealth today: facebook.com/HCRwealth/
HCR Wealth Advisors is not affiliated with this website.