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.

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From 2012-2019, Justin Sibears served as Managing Director and Portfolio Manager at Newfound Research. At Newfound, Justin was responsible for portfolio management, investment research, strategy development, and communication of the firm's views to clients. 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.