It has been an interesting two weeks in global markets. While this can be an unsettling period for investors, it can also be a great chance to form a better understanding of the market and its underlying risk.
In this regard, here are three key takeaways from the latest action in the markets we think will help investors navigate stormy waters.
Corrections are the enemy of the investment industry
After a record amount of time without a pullback the recent correction has sent shock waves through the financial ecosystem, leaving industry pundits and market strategists scrambling for a reason for all of this selling. Most have responded with their respective charts, graphs and historical examples showing that this correction has surely come to an end and therefore a great chance to buy the dip.
This isn’t surprising as corrections are the enemy of the investment industry. This is because the industry has been built on selling investment products to the public and products don’t sell very well when investors either maintain their positions (buy and hold) or worse, move to the sidelines.