August 2011 Commentary
In recent weeks, world financial markets experienced a rapid decline and significant increase in volatility. At its low, the S&P 500 was down almost 18% from its April peak, capped by last week’s wild swings that included four consecutive days of over four percent moves in market indices. Although the recent market correction is significant and unnerving, the S&P 500 is only down 4.2% for the year. The situation feels worse due to the prominent headlines and the pace of the decline. Concerns over the sovereign debt crisis in the Eurozone and an increasing probability of a double-dip recession are the key contributors to this volatile period.