Investing During Covid-19, Part 3 - The End Feels Like the Middle
In December of 2008 The National Bureau of Economic Research announced that the US had been in a recession. Four months later, in March of 2009, the market bottomed and things began to turn around. If you remember that time, early 2009 did not feel like the end of the market turmoil. It felt like the world was ending as we knew it and things were only getting worse day by day. There was still bad news for months after the market had bottomed. During World War II, the market bottomed several years before the war was over and while much more bad news was still to come.
These are not anomalies. The stock market often tends to do better before things are actually better. In many cases, the market has found its bottom while it still feels like we’re in the middle of it all. Oftentimes it is action being taken that starts the turnaround for the stock market. Many believe that the same is true for Covid-19. The market has reacted negatively to what has been and what could continue to be a large economic fallout, and it could equally react positively to decisive action to prevent the further spread of the virus. But remember - when that does happen and the market finally hits its bottom, it likely will not feel like the worst is behind us.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized investment, tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss and past performance does not guarantee future results. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing.