Pick up in market volatility this week a potential end of bull market run?

By Chief Investment Officer, Chuck Self on October 12, 2018

Given the volatility in the equity markets in October, especially the last few days, here is my commentary for those advisors whose clients may be concerned about the market correction and perhaps seeing this pick up in volatility as potential end of bull market run:

1. Volatility like this usually comes from shifts in momentum players. They were all long and at the minimum, they have to go neutral and many had to go short.
2. The market was signaling the potential for a downside move in advance of this week. Safe havens such as utilities and real estate outperformed last week.
3. The market has a way to go to become undervalued again. Clients should be reducing risk by owning more bonds and safe haven sectors than normal.

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