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November Market Insight
Decades and perhaps centuries from now, historians will likely review the happenings of the last four years with profound interest, extrapolating the social, political, and economic consequences of such events as the Covid-19 pandemic, the 2020 U.S. presidential election, the actions on January 6, 2021, the Russian invasion of Ukraine, and the most recent Palestinian/Israeli conflict. Economists will pour through vast amounts of data in an attempt to ascertain how the measurable outcomes of these seemingly unrelated global events compare to other periods when upheaval reigned.
This relatively brief four-year period has generated more than its fair share of turbulence, volatility, and uncertainty. For investors, an initial reaction to any one of these potentially overwhelming negative events might be to assume the worst and take action that could reduce one’s risk. As we have emphasized in the past, well-intended, but emotional reactions typically lead to less desirable outcomes over the longer term.
Despite the potential implications of each event, much less all of them collectively, the S&P 500 has provided substantial annual returns since Thanksgiving of 2019. Investors must maintain discipline and recognize both risk and opportunity in the face of adversity. Those who did, were rewarded by staying invested in the face of uncertain times. The United team will continue to carefully assess portfolio exposure and implement prudent strategies for preserving and growing the wealth of our clients.