2016 Quarter One Market Results: Stay the Course and Keep a Long-term Mindset

The 2016 first quarter global and U.S. market performance results are in! You can easily access the quarterly review newsletter now published by clicking here.

When markets fall even the most experienced investors can have their nerves rattled. While 2015 ended basically where it started, 2016 has seen the worst start to a calendar year in stock market history. Yet the year is young, and stock market pullbacks or corrections are actually far more common than we may think.

Over the last 30 years, the S&P 500 has seen an intra-year decline of over 10% on average. Meaning at some point in the year, the stock market fell from a previous high to a low resulting in double digit losses. We saw that in January, and by March 31 the S&P 500 was back in positive territory.

Market ups-and-downs are normal and years with large losses don’t necessarily mean bad annual returns. For example, 2011 saw a loss of 13% during the year but ended up 15%. And 1987 experienced the stock market crash of Black Monday, falling 22% in a day, yet investors who held on for the whole calendar year ended up a positive 5%.

Warren Buffet was quoted as saying, “The most important quality for an investor is temperament, not intellect.” Markets will go up and down, but it’s those investors with a long term mindset who will have the best chance of capturing the long term rates of return.

Here’s a snapshot of some of the world market highlights for the first quarter of 2016. Stay diversified and enjoy the spring.

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