2020 was a most remarkable year. The number of potential market risk triggers present in the last 12 months seemed much higher than in prior years. It would be a real challenge to put a more shocking group of events together in a single year. We had a pandemic, wide-spread civil unrest, stimulus package(s), national election turmoil and the result was significant uncertainty; all of which led to wild market swings, currency fluctuations and big differences in industry sector performance.
When word spread of the developing pandemic this past spring, we had remarkably swift market downturn reaching lows March 23, 2020. At the bottom, the S&P 500 Index was down some 34%.
Despite the fearful references to the 1918 flu pandemic, there was a dramatic rebound in the stock markets with the S&P 500 up 17.57% in only three days from the low March 23rd. This bounce back was one of the fastest come backs on record. This highlights the folly of market timing. Read on for an in depth look at what happened next…
Notes: The above article is the author’s sole opinion for information and discussion purposes only. No part of this article is intended to constitute investment, legal or tax advice. The opinions expressed herein are not suitable for all persons. Consult your investment, legal and tax professionals for advice relating to your personal situation. No offer or solicitation is made by this article. Past performance is not indicative of future results.
John D. O'Malley Jr. is the Founder and Managing Director at Eastgate Capital Advisors LLC, an Illinois registered investment advisor. Contact John for more information at jomalley@eastgateca.com, 312-690-4901 or www.eastgateca.com.
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