The extreme pessimism in global equity markets so far in 2016 has caught
many investors by surprise, and that has contributed to the day-to-day
volatility that we’re seeing. We at USAA understand that the market’s
erratic behavior may have members worried about the impact on their
family’s finances. We can assure members that we take your concerns
seriously and that we are here to help you get through this rough patch.
Good luck trying to find a logical pattern in global equity market
behavior so far in 2016. On the first trading day of the year, China was
down, and that was blamed for European and U.S. stocks being down. Since
then, we’ve also seen China up and both Europe and the Standard & Poor’s
500 down, and China and Europe down and the S&P up. And even when the
S&P is up, it tends to lack conviction.
Volatility is a fact of life in stock investing: Markets move up and
down, sometimes abruptly and sometimes driven by short bursts of
emotions. Perhaps investors have been lulled to some degree by the
relatively muted volatility during the bull market of the past six-plus