Understanding stock market behavior is an important factor in achieving long-term investment success. At Merrill Lynch Investment Managers, our professional, experienced money management teams work every day to gain more insight into market activity and the companies in which we invest on behalf of our clients.
We encourage our clients to work closely with their Financial Advisors to ensure that their expectations and investments align with their long-term plans and goals. The following discussions provide some key concepts and historical perspective to the market as a foundation for future decision making. Keeping sight of your investment objectives during difficult times is often a determining factor in long-term success.
As a follow-up to our March communiqué, we invite you to read about the importance of maintaining perspective during this period of market volatility.
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BENEFITS AND INVESTMENT SOLUTIONS (BIS)s
Merrill Lynch Benefits and Investment Solutions Copyright 2001. All rights reserved. Printed in USA
The information set forth herein was obtained from sources which we believe reliable, but we do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation by us of the purchase or sale of any security or commodities.
Stocks continued to retreat in the quarter ended March 2001, as the bear market intensified. But bonds moved to the upside. The stock market sustained new losses as it reeled under a relentless stream of earnings shortfalls announcements. Following a brief upturn in January, technology stock prices resumed their tumble. Many investors, finding that even the staunch "old economy" stocks were declining in value, simply withdrew from the equity market. The Wilshire 5000 stock index, a proxy for the domestic stock market, lost -12.3 % for the quarter.
Although some economic sectors suffered more than others (especially the technology and telecom groups) hardly any sector went unscathed.