It is certainly easy to get a bit rattled when you open up yahoofinance.com and see words and phrases like "September swoon," "stocks pummeled," "worries mount," "panic," "bear market," "heavy losses," and "sick market" being used to describe ongoing market volatility.
At the time of writing, the SPDR S&P 500 ETF (ticker: SPY) is in a 9.4% drawdown. To put this into perspective, fixed income investors would have experienced larger dips from 2007 to present by investing in 7-10 Year U.S. Treasuries, investment grade municipal bonds, or a mutual fund or ETF tracking the Barclays Aggregate Bond Index. Investors in investment grade corporate bonds - hardly considered a risky investment - lost more than double SPY's current 9.4% drawdown in 2008.
Justin Sibears
Justin is a Managing Director and Portfolio Manager at Newfound Research, a quantitative asset manager offering a suite of separately managed accounts and mutual funds. At Newfound, Justin is responsible for portfolio management, investment research, strategy development, and communication of the firm's views to clients.
Justin is a frequent speaker on industry panels and is a contributor to ETF Trends.
Prior to Newfound, Justin worked for J.P. Morgan and Deutsche Bank. At J.P. Morgan, he structured and syndicated ABS transactions while also managing risk on a proprietary ABS portfolio. At Deutsche Bank, Justin spent time on the event‐driven, high‐yield debt, and mortgage derivative trading desks.
Justin holds a Master of Science in Computational Finance and a Master of Business Administration from Carnegie Mellon University as a well as a BBA in Mathematics and Finance from the University of Notre Dame.
