Good morning. My name is Chad Taylor, managing partner with MDT Financial Advisors here in Houston, Texas. Today is Tuesday, August the sixth, 2024, and I was just hopping on to record another quick video yesterday. I recorded a much longer video on what was going on in the market. If you remember on Monday, August the fifth, it was a pretty rough day in the markets after the end of last week being pretty rough. And so I'm trying to record a few things every time I see something that I find interesting, and it was kind of funny timing Yesterday I mentioned in the video about how the markets sell off once a year for something even in up years and today there was a video on or a chart that Wells Fargo Investment Institute put out that just actually illustrated that. So I wanted to share it with you right now.

So I have this chart up right now and it says, A downturn is no reason to exit the market. If you would like this full report, let me know and we can send it to you. But I found it very interesting. It was talking about, and you can see this goes all the way back to 1980, but when you look at the market, in this case we're talking about the s and p 500. Now there's also the Dow Jones Industrial Average. There's the nasdaq, which the NASDAQ was down more yesterday than the s and p 500, but this is just a good representation of the market, although as we've talked before, the last two years, the magnificent seven stocks have kind of skewed the s and PA little bit just because it's a market weighted indexed. And so it's been a little different, but you'll get what I'm trying to say here.

And across the top there or the bar is what the s and p 500 did during the year so far, whenever this was released, it was up 13%. Last year it was up 26%. The year before it was down 18%, and then below the line where it shows the negatives in red, that's what happened during the year, at least at one point. And so you can kind of see this year it was down 6%. That was back in April. Last year. At one point it was down 10%. The year before it was down 24%. You can see so forth and so on the back in 2021, it was down five, a pretty calm year. The year before in Covid it was down 34% and then all the way back, and obviously the ones that you remember that were so painful, and I've been in the business since the mid nineties were the covid market where it was down 34% back in 2008, where at one point it was down 48% and then 2009 at one point it was down 27%.

And so those are rough. The early two thousands, right after the tech bubble burst, we had down 17 down 29, down 33, 3 years in a row that were pretty rough in the markets. But you can see over 80% of the times the markets closed up even though we had these rough downturns during the year. And so the point of that is you worry does this turn into one of those really bad years, like 2008 or 2002, or is it a normal pullback that happens once a year, similar to 2022 or even, what was that 2019 where it was down 7% and then closed up 31. So these pullbacks happen. They will continue to happen. If the markets settle and then continue their journey up, then it was a normal pullback. We'll see if this time is something more significant or if it's just a normal time, but I always find this interesting. As we always say. If there's any questions you have, if there's anything we can do, please don't hesitate to reach out and let's have this conversation. Hope you have a great day. Thank you.