Market Events
Why Knowing the Absolute Market Bottom Doesn’t Matter
Key Insights
- The key question our Asset Allocation Committee is debating is how much risk to take on relative to stocks versus bonds.
- We have been marginally adding to stocks, but after recent market gains, we intend to hold our moderate overweight to stocks relative to bonds.
- A study of previous market sell-offs over the last 90 years shows that investors should not be overly focused on timing the absolute market bottom.
Important Information
This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.
The views contained herein are those of the authors as of April 2020 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
This information is not intended to reflect a current or past recommendation, investment advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Investors will need to consider their own circumstances before making an investment decision.
Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.
Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal.
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