We witnessed an extraordinary move in the financial markets on Monday, March 9.
The Dow Industrials lost over 2,000 points, as Coronavirus fears continued to worry investors. At the same time, oil prices lost nearly 25 percent, on news that Saudi Arabia was dropping crude oil prices and raising production as well. Meanwhile, the 10-year Treasury bond yield touched an all-time low of 0.318 percent during the trading session, as unnerved investors looked for some stability.[1]
In times like this, I frequently hear that some find it difficult to stay committed to an investment program when fear has gripped the financial markets.
But for me, a quick look at recent history helps me keep these events 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. Whatever decisions you’re considering, I’d be honored to support you through them. Reach out to me anytime.
Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative. Cambridge Investment Research Advisors Inc., a Registered Investment Advisor. Barbara Mull Investment Solutions, LLC and Cambridge are not affiliated.
Footnotes, disclosures, and sources:
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2020 FMG Suite.
[1] CNBC.com, March 9, 2020
[2] CNBC.com, February 8, 2018
[3] CNBC.com, October 10, 2018
[4] CNBC.com, December 25, 2018