A Long-Term Perspective on Short-Term Volatility - fitzgeraldflynn.ie

A Long-Term Perspective on Short-Term Volatility

Posted in Pensions by Val on 07 Feb 2017.

This deck of slides has been compiled to help illustrate to clients how short-term movements (volatility) can be uncomfortable at the time, but reduce in significance over time.

It presents a graph of market performance (the MSCI ACWI index) over increasing time periods – the most recent quarter, calendar year, 5 years, 10 years and from 1994.

On the graph, we point out interesting news events. This is not to explain the market’s movement, simply to provide a historical context.

The deck reinforces the point that the market has provided positive long-term returns in spite of great uncertainty and momentous events in the past.

We imply from this a likelihood that it will do so in the future so the deck may be helpful in conversations with clients who are concerned about short-term market movements or short-term performance