The S&P 500 has fallen below its 200-day moving average-a level closely watched as a potential turning point for market momentum.
While this pullback has brought the index near correction territory, it’s important to remember that 10% drawdowns are common in most years, even in strong uptrends. Similar breakdowns have sometimes led to deeper declines, while others have seen swift recoveries.
No single indicator can predict the future, but moments like these are why we utilize our RiskFirst® approach to disciplined, risk-management. This allows us all to stay focused on long-term goals rather than reacting emotionally to short-term market moves.
Tripped on the 200
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: March 17, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
