Permanently?

If you own a diversified portfolio of stocks, odds are you own companies such as JP Morgan, Home Depot, and Apple. 

And this year, stocks are down more than 20% in price as we endure a particularly brutal down cycle.
(S&P 500 Index, Source: FactSet)

At moments like this, it is really important that you ask yourself:

Does it seem probable to you that the largest, most seasoned, most well financed and profitable companies in the world have permanently lost 20% of their value as ongoing businesses?

Or does it seem more likely that in the short-term stock prices move foolishly & randomly, and really aren’t hitched directly to the business of each company?

The views expressed herein are those of the author and do not necessarily reflect the views of Raymond James & Associates or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and investors make incur a profit or loss.

The Standard & Poor's 500 Index is a market capitalization weighted index of the 500 largest U.S. publicly traded companies by market value.

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