by Mark Holloway & Paul Stropkay
Stock Yards Bank Wealth Management and Trust
Having enjoyed relative calm in the capital markets, as well as all-time highs across a variety of equity indices during 2017 and into the first month of 2018, many investors were stunned by price volatility in stock and bond markets this afternoon. While price volatility may feel unsettling, we are aware that secular bull markets are often temporarily interrupted by intermittent downdrafts in market prices.
So, what happened today? Early reports cite computerized trading as the source of market price volatility. A more fundamental cause may be that interest rates have risen in recent weeks and offer current yields that investors have not seen in recent memory. At some level of interest rates, bonds compete with stocks.
Famous value investor Benjamin Graham is attributed with the following quote: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” As long-term investors, we weigh the wealth-creating power of the companies we have purchased for our clients’ portfolios and welcome investment opportunities that price volatility provides.
As always, we will continue to monitor developments in the economy and in the capital markets with our clients’ portfolios in mind. Rest assured that our commitment to quality, liquidity, and risk management will not waiver.
Should you have any questions or concerns, please contact your investment officer at Stock Yards. We always welcome the opportunity to discuss your objectives and to develop an investment portfolio to help you reach your goals.
Wealth Management & Trust
KATHY THOMPSON, Senior Executive Vice President, (502) 625-2291
E. GORDON MAYNARD, Managing Director of Trust, (502) 625-0814
MARK HOLLOWAY, Chief Investment Officer, (502) 625-9124
SHANNON BUDNICK, Managing Director of Investments, (502) 625-2513
PAUL STROPKAY, Chief Investment Strategist, (502) 625-0385
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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