Altium's Perspective on Recent Market Volatility

On behalf of the Altium Investment Committee;

Given the recent volatility in the markets, we thought it was a good time to reach out and share Altium’s perspective on current market conditions. Global equities have been under pressure since mid-February, as investors wrestle with the impact of the Coronavirus on future earnings, growth and their own health! The S&P 500 is down 10% for the year as of Friday afternoon (2/28/20). High quality government, municipal and corporate bonds have all performed well, as there has been a flight to quality driving yields on some bonds to all-time lows.

To put these recent market moves into perspective, we need to recognize that we are in the later stages of a long bull market and valuations had been arguably high. Exogenous shocks like this virus will result in spikes in volatility as we have seen before. We expect this volatility to continue as the markets digest the economic impact of the virus and as we head into elections this fall. We also feel it is important to keep the 10% decline in perspective when you consider the index was up over 31% in 2019.

As we manage your account in this market environment, we want to reiterate our methodology of portfolio construction. We use conservative capital market assumptions to construct diversified portfolios that will perform well over a complete market cycle. Market drawdowns like this, and spikes in volatility, are expected and factored into our portfolio construction process. While the market had a great year in 2019, we saw two separate declines of over 6% during the year. This type of volatility is the norm . . . not the exception.

The market moves this week help to emphasize the benefits of diversification and risk management, as we build your portfolio to align with your investment plan and cash flow needs. We do not respond in a knee jerk reaction to a market move of this nature. We take advantage of the volatility to harvest tax losses and rebalance the portfolio as needed. We want you to remain confident that your portfolio will meet the needs of the plan we have developed together.


Altium Wealth Management LLC (“Altium”) is an SEC registered investment adviser with its principal place of business in the State of New York. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of Altium, please contact Altium or refer to the Investment Adviser Public Disclosure web site (

The information contained herein is provided for general informational purposes only, reflects the opinions of Altium which may not come to pass, and should not be construed as personalized investment advice. The performance results presented herein simply reflect the performance of various benchmark indices over a period of time and do not represent any actual performance results of Altium. Past performance is no guarantee of future results and there can be no assurance that any particular strategy or investment will prove profitable. This newsletter contains certain forward-looking statements that indicate future possibilities.

Indices are unmanaged. Any reference to a market index is included for illustrative purposes only as it is not possible to directly invest in an index. The figures for each index reflect the reinvestment of dividends, as applicable, but do not reflect the deduction of any fees or expenses, or the deduction of an investment management fee, the incurrence of which would reduce returns. It should not be assumed that your account performance or the volatility of any securities held in your account will correspond directly to any comparative benchmark index. Bonds and fixed income investing involves interest rate risk. When interest rates rise, bond prices generally fall.

Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that the views and opinions expressed in this newsletter will come to pass. Additionally, this newsletter contains information derived from third party sources. Although we believe these third party sources to be reliable, we make no representations as to the accuracy or completeness of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Clients should contact Altium promptly if they experience changes in their financial situations relevant to the management of their accounts.

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