The Markets are Volatile. What is the Plan?
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So far, January 2022 has not been kind to the markets. At one point during the day Monday, the S&P 500 was off by more than -11% after putting in an all-time high to start the year. As we have stated in previous market updates, the technology related stocks have seen the biggest increase in volatility. Volatility is a sign of confusion and fear, which is a bearish characteristic.
We have been very vocal about the risk in the large-capitalized technology for months. The S&P 500 index is mostly composed of technology related securities, with its top 7 companies representing a quarter of the market index. Those same top 7 companies are primarily responsible for most of the gains in the index. They are also responsible for much of the decline that we are experiencing now.
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