Recent Market Volatility
By Generational Wealth Advisors
11/19/2018
Following a spike in volatility earlier this year, global equity markets returned to relative calm through summer and early fall. However, during October and November, an increase in volatility in the market has resulted in renewed anxiety for many investors.
From October 1 through November 23, the US market (as measured by the Russell 3000 Index) fell almost 10%, resulting in many investors wondering what the future holds and if they should make changes to their portfolios. Over just two trading days, on November 19 and 20, the handful of tech stocks that have driven the recent performance of the S&P 500 retreated even further. At their lowest points, Facebook, Amazon, Apple, Netflix and Alphabet (Google) were all down by more than 20% from their peaks.
While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.
About Generational
Generational Group, headquartered in Dallas, TX, is a leading, award winning full-service M&A advisory firm. Generational has over 300 professionals across 16 offices in North America. The firm empowers business owners to unlock the full value of their companies through a comprehensive suite of services—including strategic growth consulting, exit planning education, business valuation, value enhancement strategies, M&A advisory, digital solutions, and wealth management.
Celebrating its 20th year, Generational has successfully closed over 1,700 transactions and has ranked #1 or #2 in all LSEG league tables for deals valued between $25 million and $500 million in 2022, 2023, and 2024.
The firm was named 2024 USA Investment Banking Firm of the Year by the Global M&A Network and recognized as Investment Banking Firm of the Year by The M&A Advisor in both 2024 and 2022.