Out of all the 2020 market predictions, nobody suspected a virus. The future can be unpredictable like that.
But that’s why a plan is so important. Your investment plan may not have foreseen what would hit the markets, but it should have prepared you for a hit of some kind.
As we’re finding out, Mr. Market can get wild at times. While the S&P 500 is down 10.8% from its 2020 high, it’s only down 6.4% on the year. That brings it back to the same level it was at four months ago — November 2019.
If it feels worse, it’s because the fall happened so quickly. Seven trading days, and a 12.8% decline, separate the February 19th high from the February 28th low.
And it’s been highly volatile since. So far, March saw the S&P move: 4.6%, -2.8%, 4.2%, -3.4% over its first four consecutive trading days.
Of course, that only tells part of Mr. Market’s story. What about the stocks inside the S&P 500? Just because the S&P is down doesn’t mean every stock in the index is down (it’s a convenient example of the benefits of diversification in times like these). Which happens to be the case YTD: Continue Reading…