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Managing Market Jolts

If you need proof of the value of diversification, look no further than the performance of emerging-market stocks over the past two years. In 2017, they outperformed all other major asset classes, generating an impressive 37% return. In 2018, they came in dead last, ending the year down 15%.1

At Schwab, we believe diversification is the best antidote to volatile markets. Think of it as a financial shock absorber: By spreading your investments across a range of asset classes, you can dampen the impact of any one investment.

That said, volatility is in the eye of the beholder. Some want as few bumps in the road as possible, while others can tolerate a rocky ride in pursuit of higher returns. If you’re unsure how much risk you’re truly comfortable with, Schwab Intelligent Portfolios® can help. The Investor Profile Questionnaire identifies both your goals and relative comfort with risk, then suggests a diversified portfolio that’s most appropriate for your needs. Get your portfolio recommendation now.

Of course, diversification won’t eliminate market risk altogether, but it can help you stomach the rough patches. If you’re ever feeling unsure about the road ahead, feel free to give us a call or stop by your local branch. We’re here to help.


Charles R. Schwab

Founder & Chairman

1Schwab Center for Financial Research. Emerging-market stocks are represented by the MSCI Emerging Markets Index.

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Important Disclosures:

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

Please read the Schwab Intelligent Portfolios® disclosure brochures for important information, pricing, and disclosures relating to Schwab Intelligent Portfolios.

Schwab Intelligent Portfolios is made available through Charles Schwab & Co., Inc. (“Schwab”) a dually registered investment advisor and broker dealer.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.


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