During the first days of this correction we sent a lot of clients an email explaining that corrections occur on average every 18 months. Since then, Matt McLennan, the manager of the First Eagle Global fund, published an excellent piece giving his assessment of the current environment.
Matt believes this is a “not a crisis, but a genuine correction.” This doesn’t mean broad indexes won’t, before continuing to rise again, not fall 20% or more, but it underscores our thesis that this is a healthy development which allows enterprising investors (like our managers and stock strategies) the opportunity to buy stocks at better prices. Volatility is the price for long-term returns.
We cannot know how long this may last but as long as your goals have not changed and we have an accurate assessment of your ability to endure risk and your ability to endure volatility, we should continue on track. Please feel free to reach out to us if you have any questions.
Link to First Eagle Commentary