We have witnessed some extraordinary moves in the financial markets during the past few trading sessions.
In recent days, the Standard & Poor’s 500 index has fallen by over 7 percent more than once. Ongoing concerns over the possible economic slowdown stemming from the coronavirus are prompting traders to reprice financial assets.1 For many, things “got real” when the National Basketball Association suspended its season, and actor Tom Hanks and Rita Wilson both tested positive for COVID-19.
In times like these, I hear from some clients that they can find it difficult to stay committed to an investment program when fears are high.
But for me, a quick look at recent history helps me keep tumultuous seasons in perspective.
Remember when the trade dispute with China ramped up back in February 2018? In just six trading days, stock prices had undergone a rollercoaster ride on their way to a 10-percent market correction. On February 8, 2018, CNBC reported that the Dow Industrials traveled 22,000-plus points over the course of February’s first full week of trading, due to trade-related fears.2
How about the 4th quarter of 2018? On October 10 of that year, the Dow saw an 800-point drop, largely due to rising interest rates and global economic concerns. And who can forget the holiday market trading two months later? It was a breathtaking event as the Dow lost over 600 points on Christmas Eve, then soared 1,000 points the day after Christmas.3,4
In the past few weeks, I’ll admit that I’ve done a few “double takes” at my computer screen, as we’ve watched major swings in stock prices and movements in the bond and crude oil markets.
But just like always, I am here to help you and your family answer any questions that might surface for you. Whatever decisions you’re considering, I’d be honored to support you through them. Reach out to me anytime.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
- CNBC.com, March 12, 2020
2. CNBC.com, February 8, 2018
3. CNBC.com, October 10, 2018
4. CNBC.com, December 25, 2018