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Coronavirus & the Market

Ivy Market Perspectives

Ivy Investments gives their perspective on the stock market volatility and the cost of missing the market.

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Market Volatility

Lord Abbett provides insight into "Three Things to Remember in Scary Times"

Coronavirus Contraction

An updated outlook from First Trust: Coronavirus Contraction

Remaining invested vs. converting to cash

While we observe the recent market volatility, we wanted to provide you with some historical market date in this period of turmoil.  Attached are two reports that show the comparison between two different hypothetical scenarios in the wake of market corrections.

The first scenario (attachment #1) shows $100,000 invested in the S&P 500 from June 1st of 2007 to May 31st of 2018. The money stayed invested throughout the duration of the 2008-2009 bear market and showed a positive return at the end of the period.

The second scenario (attachment #2) shows $100,000 invested in the S&P 500 from June 1st of 2007 to May 31st of 2018. The money stayed invested until April of 2009, following the steep correction. Then held the stake in cash until April of 2010 and invested back into the market when things seemed to have started to recover.

You will see by the end of the period, the investment return of the hypothetical scenario that stayed invested during that period compared to the one who moved to cash had a significantly larger annualized return of the period.

As your Financial Advisor, I want this to be a reminder that even when markets struggle to perform positively, we must keep our sights on the long-term goals. We continue to invest within risk tolerance comfort levels and maintain logical decision making even when emotions run high and tell us to think differently.

 

The S&P 500 index is unmanaged and cannot be directly invested into. 

Past performance is no guarantee of future results. Investing involves risk and the potential to lose principal.

This information is meant to be general, and it is not investment or financial advice or a specific recommendation of any kind. Opinions and forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Actual results could differ materially from those anticipated. Please consult your financial advisor before making financial decisions.

Perspective

Securian Financial puts market declines into perspective.

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Economic Research Report

First Trust provides reasons to be positive about the US Coronavirus fight.

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Market Impact & Macro View

An update from Ivy Investments on the Coronavirus and its market affect.

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Epidemics & Stock Market Performance

View the history of how the S&P 500 has been impacted by epidemics and outbreaks since 1980.

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Markets in Perspective

First Trust provides a look at:

  • The timeline for the S&P 500 Index from 2008-2019, through several major crises and events.
  • Staying the Course - comparisons between "sitting on the sidelines" and staying in the game.
  • A timeline of how different asset classes have performed in the past.
  • A detailed history of U.S. Bear & Bull Markets.
  • The probability of positive returns & its relation to investment length.
  • A history of the S&P 500's daily volatility.
  • Historical performance of the S&P 500 after extreme down days.
  • A comparison of market corrections.
  • Election Year market history since 1928
See the Analysis

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. The information presented does not constitute a solicitation for the purchase or sale of any security and is not a recommendation of any kind. Please consult your financial advisor before making financial decisions. The S&P 500 index is unmanaged and you cannot directly invest into an index. Past performance is not a guarantee of future results. Investing involves risk, including the potential loss of principal.  03/20


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Waddell & Reed and Ivy Investments are affiliated firms.  Neither are affiliated with any other entities referenced.

(03/20)

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