Volatility is part of investing – but in recent years, markets have been rebounding faster than ever. In his recent piece for Kiplinger, our CIO Nathan Hoyt breaks down why rebounds are moving at “warp speed” and what that means for long-term investors.
From the COVID crash’s record-setting comeback to April’s tariff-driven volatility, markets are bouncing back in weeks instead of years. Nathan points to four key drivers:
- Instant information: News spreads (and reactions happen) in seconds.
- Cash on the sidelines: $7 trillion ready to re-enter the market when valuations drop.
- Fed intervention: A history of stepping in fuels investor confidence.
- Experience: Investors have seen recoveries happen again and again.
For those with the right risk tolerance, these dynamics can make systematic investing during downturns even more compelling — turning short-lived pullbacks into opportunity.
As Nathan notes, “Patience and a clear plan can be powerful tools — especially for investors who are willing to stay calm, stay invested and, when the moment is right, buy the dip.”
Read the article HERE