Friends
As more and more coronavirus cases are being reported, the markets continue to be roiled. As mentioned yesterday, we are almost certainly going to see volatility increase, as extremely oversold conditions create violent rallies. The game plan for long term investors does not change. If you have been looking for an entry point and thought stocks were overpriced, then here’s your opportunity to at least start nibbling as stocks are 10% cheaper than a week ago. If your allocation was properly positioned before the all this started, then you simply let this all play out. No one knows how bad the virus contagion will get, and no one knows how long it will take to turn the corner. Hyperbole spewed from the mouths or pens of the “end of the world” types may be entertaining to some, but certainly not helpful to normal caring human beings. Whatever this ends up being, it too will pass.
As for today, stocks dropped on each additional headline. Traders tried to buy the swings but sellers overwhelmed the buyers. For the day, the Dow Jones Industrial Average was down 1192 points to finish the day at 25,764. The S&P 500 was down 137 points to close at 2978. Gold was down $.60 to trade at $1,642 per ounce, while oil was down $1.86 to trade at $46.87 per barrel WTI.
Remember, stay calm. We’ll ride out, whatever this ends up being, together.
Have a nice evening everyone.
Jim
