Staying the course after a week of market upheaval August 22, 2015

A quick review of financial headlines tells us that we should be afraid, really afraid of what might come next week.  I think most people couldn’t wait for the markets to close on Friday, I say most as obviously some things did go up, some people were short and others we waiting for a pullback or correction to put cash to work.  At OneTRADEx we serve a variety of clients, including some institutional clients ranging from small captive insurers to start-up hedge funds.  That being said the vast majority of our clients are individuals who either hold their portfolio directly or through and offshore company structure or trust. A further break down shows that these individuals are either active traders or investors.  For active traders weeks like we just had can actually generate meaningful positive returns as they need movement and volatility in the financial markets.  However for most of our clients who are investors seeking to build or maintain there wealth last week was likely a terrifying roller coaster ride that never seemed to end.

Markets have been fairly sedate recently and I think that had shortened memories making some forget that indeed markets do not go in straight lines and even worse it can upon occasion feel as if the bottom is falling out and the loses will never stop.  There is a good article in the New York Times (nyti.ms/1JyWI0f)  which I would encourage anyone with a few spare minutes to read as it advocates a calming perspective on the market.

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