Most people understand that stock prices don't go straight up. But when market volatility increases, the price action can test the mettle of even the most seasoned investor.

In recent weeks, stock prices have trended lower with a few eye-popping, one-day rallies as the financial markets appear to adjust to higher interest rates on long-term Treasuries. Since the beginning of the year, we've seen a jump in the yield of the 10-year treasury.

While investors recognize that economic strength may lead to higher bond yields, it's the speed at which bond yields increased that have proven unsetting. Generally speaking, when yields rise, bond prices tend to fall.

It's uncertain what's next for stock prices, but it's possible the current downtrend could take certain market indexes into a correction, meaning a decline of 10% or greater from a recent high. The Nasdaq market has flirted with correction territory as the rising bond yields have upended some high valuation growth stocks. 

The Dow and S&P 500 both hit new records on Monday as investors grew optimistic about the economic reopening from the pandemic.

What matters is what you do next. Right now, it may be best to ignore some of the short-term price swings. Remember, you craft your investment strategy to help pursue your long-term goals, regardless of what the markets do from day-to-day.

You're always welcome to give me a call with your questions. Rest assured, we're keeping a close eye on the financial markets, and most importantly, watching for any new long-term trends that may emerge on your behalf.

This information should not be construed by any client or prospective client as the rendering of personalized investment advice. All investments and investment strategies have the potential for profit or loss, and there can be no assurance that the future performance of any specific investment or investment strategy including those discussed in this material will be profitable or equal any historical performance levels. Investment strategies such as asset allocation, diversification, or rebalancing do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Any target referenced is not a prediction or projection of actual investment results and there can be no assurance that any target will be achieved. Kent Patrick is with Bush Wealth Management.