Markets plunged last week over fears of the coronavirus “jumping” across China’s borders. The rapid spread has now affected our economy. With new cases confirmed in Italy, South Korea, and Iran, the market took a major plunge, causing fears of a prolonged global economic slowdown.
On Monday, February 24th, the S&P 500 closed at 3,225.89 (-3.35%), making it the worst day in the past two years, wiping out its year to-date gains. Dow Jones closed at 27,960.80 (-3.56%), making it the biggest point and percentage point drop since February 2018, also giving up its 2020 gains1. From there we watched the Markets plunge for the sixth consecutive day on Thursday, with coronavirus fears shaving over 1,100 points off the Dow — its biggest in history — and sending the S&P 500 Index swooning to its fastest-ever correction2.
At Retirement Solutions, we know that market activity like this can be concerning. For some, this may be the time to take a step back and evaluate your appetite and tolerance for risk. Have they been properly gauged? If so, the market’s activities shouldn’t be cause for alarm. If your potential losses are not aligned with your risk tolerance, then it may be time to meet to determine how much risk you’re comfortable with. We encourage a plan that’s tailored to your individual goals and risk tolerance. If you’re concerned about your investment strategy, give us a call at 801-465-6990.
This material is for informational purposes only and should not be considered advice. Investment advisory services offered through Retirement Solutions Investments, Inc., a Utah registered investment advisor. Insurance products and services are offered through Retirement Solutions, Inc., an affiliated insurance agency.
1 Fred Imbert & Eustance Huang. February 24, 2020. “Dow plunges 1,000 points on coronavirus fears, 3.5% drop is worst in two years.” https://www.cnbc.com/2020/02/24/us-futures-coronavirus-outbreak.html
2 Heidi Chung, Javier E. David, Nishant Mohan, February 27, 2020. “Stock market live updates: Dow drops 1190 points amid coronavirus fears, S&P 500 sees fastest correction in history.” https://finance.yahoo.com/news/stock-market-news-live-updates-february-27-2020-122658989.html
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