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How Quickly Markets Can Change

In 2015, stock market leadership centered primarily on high-priced aggressive growth stocks.4.20.16

How quickly things have changed. Many aggressive growth stocks have tumbled in 2016. Small cap biotechnology stocks, which had climbed nearly 300% from 2010 through 2015, have declined 47% from their highs last July.

The multiyear performance advantage accumulated by aggressive growth stocks and mutual funds has been erased in many cases.

The turnabout is a reminder that chasing high-flying, high-priced stocks often ends poorly. That is not to say it is easy to ignore the siren song of these stocks; the fear of missing out can be powerful.

Likewise, the decline in these stocks should remind investors that promising companies may not enjoy good stock price performance if they are purchased at a high price.

Market dynamics can change quickly. Rather than chasing high-flying stocks, investors should look to buy good companies at attractive prices.

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.
Investment Advisory Team
Hefren-Tillotson

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Hefren-Tillotson Inc. is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN® for individuals and businesses. The firm’s wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFS’s. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills.