How LBW Sees It
At the end of the first quarter (“Q1”) of every year, it begins to feel like spring (well sometimes not in WI), bringing great memories. One of my (Tim’s) favorites: the anticipation of knowing that the Salt Lake City Firefighters’ annual Lagoon day was around the corner. It was almost time to go ride the best roller coaster in UT, the Colossus. I would constantly think about getting in the cart and going up the first hill, hearing click, click, click, until finally it was no more. And then boom – flying down the hill, zipping around corners, going around, not just one, but two full loops! It was a kid’s dream. Now, I may not be able to go ride the Colossus this year, but the markets in Q1 stepped in and took its place. For example, from the beginning of Q1 to its peak, the S&P 500 gained roughly 7.45% (the hill). And from its peak to trough, it dropped -10.16% (the drop), which, by definition, is a correction. By the end of the quarter, the S&P 500 gained back roughly 8.93% (the loops) of what it had lost and ended the quarter down -1.22% (the finish).
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