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Taking the Fear Out

Of Market Volatility

Click to edit Master text styles “Look at market fluctuations as your friend rather than

your enemy; profit from folly rather than participate in

it.”

- Warren Buffett, American business magnate, investor, and

philanthropist

“The stock market is the story of cycles and of the

human behavior that is responsible for overreactions in

both directions.”

- Seth Klarman, American billionaire investor, hedge fund

manager, and author.

A Few Wise Words

On Market Volatility

“Rather than be fearful and sell out at the worst time or

get greedy when the market is way up, investors

should control their emotions and not only avoid panic,

but embrace the market volatility for what it is: an

opportunity and a gift.”

- Jeremy Grantham, British investor and co-founder and chief

investment strategist of Grantham, Mayo, and van Otterloo

Click to edit Master text stylesMarket Volatility: Threat or Opportunity?

• “Nothing is certain, except death, taxes and market volatility.”

• When most investors think of market volatility, they associate it with financial loss.

• Market volatility is normal, can be managed with sound investment strategies, and can be regarded as

an opportunity.

• Swings in financial markets can be fear-invoking and can cause the average “rational” person to make

irrational decisions that can be detrimental to their financial future.

• Armed with the proper guidance, awareness and investment strategy, market volatility becomes a lot

less scary

Our Goal Today: Put market volatility into perspective, and provide tips to ensure

you are well-positioned to navigate market cycles and reach your investment goals.

Equity Market Volatility Is Always Present

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S&P 500 Index Intra-year Decline

Source: SEI, Factset

Annual Returns are Total Return returns of the stated index.

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any

management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not

guarantee future results.

20-Year Annualized Return: +6.0%

Average Intra-Year Decline: -15.3%

Market Volatility Is Below Historical Norms

Sources; Bloomberg, SEI; data as of 3/5/2020

• Uncertainty surrounding the eventual economic impact of the coronavirus has driven market volatility higher.

• Volatility has been higher in the past and can still increase from here.

• It is normal for market declines to occur at some point almost every year.

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Diversification does not ensure a profit or guarantee against a loss.

Diversification Is

Key to Help Smooth

Out the Ride

• No one asset class consistently outperforms the

other

• Fewer ups and downs may make for a smoother

path to your financial goals

• Consider diversifying your portfolio across multiple

asset classes

Diversification does not ensure a profit or guarantee against a loss.

Click to edit Master text stylesBad Behavior – It’s Only Human

• Human behavior can often play a detrimental role

in investment decisions – especially during

volatile markets

• Emotion can get the best of us, and cause

investors to make irrational decisions, like

liquidating investments after a market correction

out of panic and fear, or buying at market highs,

when times are good and confidence is high.

• These emotional decision can have a negative

impact on portfolio returns, and a detrimental

impact on achieving investment goals

Resist the Emotional Roller Coaster• There will always be events that cause ups and downs in the financial markets – and it’s easy to overreact to short-term news.

• It’s important to remember, however, that historically, markets have always rallied and gone on to reach new heights, and to not let

your emotions lead you to making the wrong investment decisions.

Source: SEI. Index returns are for illustrative purposes only and do not represent actual investment performance. Index returns do not reflect any management

fees, transition costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Click to edit Master text stylesA Few Days Can Make a Big Difference

• Missing out of the best market days can

seriously diminish long-term performance

• investment returns can be negatively impacted

by missing a few good days in the market

• The key is to stay invested to reap the rewards

Investment Period12/31/1999 to 12/31/2019

S&P 500 Returns

Full Period Return 6.1%

Missing 10 Best Days 5.7%

Missing 20 Best Days 3.3%

Missing 30 Best Days 1.2%

Missing 40 Best Days -0.8%

Source: SEI, FactSet

Annualized returns using daily total returns of the S&P 500 Index

Index returns are for illustrative purposes only and do not represent actual investment performance. Index returns do not reflect any management fees, transition costs or expenses.

Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

We Believe a Disciplined Approach Is the Surest Path to Success

Annualized total returns of S&P 500 through 8 cycles of bear and bull markets, beginning with the bear market that started in December 1961. Bear market defined

as a decline of 20% or more in the S&P 500 price index. Based on daily data from 3/4/1957 through 12/31/2019. Source: Bloomberg, SEI. As of 1/23/2020.

+17%+12%

+8%+8%

+21%

+16%

+2%

+8.4% as of 12/31/19

• Holding on through a downturn in order to fully participate in the recovery has long been a discipline that’s served investors well.

• The average experience of the last 7 bear/bull cycles (excluding the most recent) has been a gain of 12%, on an annualized basis.

Click to edit Master text styles Work With Your Advisor

and Focus On Your Goals

• To help navigate volatile markets, be sure to work

with your advisor to establish a financial strategy

customized to suit your investment objectives,

time horizon and risk tolerance

• Meet with your advisor regularly to monitor your

progress, re-evaluate your investment objectives

and rebalance your portfolio to ensure you’re on

track for success

• Keep focused on what matters to you –

achieving your personal investment goals – not

market “noise”

• What matters isn’t “How have the markets done

today”; what matters is “Am I on track to meet my

goals?”

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Invest In a

Diversified

Portfolio

• Staying invested in a diversified portfolio of equities and

fixed income, with asset allocation suitable for your

investment objectives, can be the best way to help you reach

your investment goals and stay the course through all

markets.

• Consider investing in an all-in-one portfolio solution, where

you can get a fully diversified portfolio, and leave the

investment decisions up to professional money managers.

– Actively managed and rebalanced

– Reduces the “human behavior” element of investing

– Frees up time so you can focus on what’s important to you

Click to edit Master text stylesA Disciplined Approach Can Pay Off

• Market volatility is normal. Market declines are inevitable and occur, at some point, almost every

year. Historically, markets have always rallied and gone on to reach new heights.

• Stay invested in a well-diversified portfolio suited to your goals, time horizon and risk

tolerance through all market conditions is a time-tested strategy for achieving investment success.

• Resist the emotional rollercoaster and behavioral traps that could lead to poor investment

decisions.

• Focus on your personal investment goals and not short-term market fluctuations.

• Work with your financial advisor to establish a financial strategy, help keep you on track, and stay

focused on your investment goals.

“Long-term consistency trumps short-term intensity.”

- Bruce Lee

Click to edit Master text stylesInformation provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments

Company (SEI).

Neither SEI nor its subsidiaries are affiliated with your financial advisor.

Diversification may not protect against market risk.

There are risks involved with investing, including loss of principal. Diversification may not protect against market risk.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a

forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as

research or investment advice and is intended for educational purposes only.

There is no assurance the objectives discussed will be met. Past performance does not guarantee future results. Index

returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect

any management fees, transaction costs or expenses. One cannot invest directly in an index.