- Blood, Sweat & Tears
Again, we learn the truth about the stock market. Again, we find ourselves wondering why we were not prescient. There will be any number of folks who will tell you they saw this coming. There is always someone who saw it coming. Some have been seeing it coming since 2018. They were finally right. Hurrah!
According to Yahoo Finance, the S&P 500 index was at 2648.05 on April 1, 2018. Today (April 14, 2020) as I write this post, it is at 2838.14. So if I got out of the market two years ago and got back in now, I would have given up 190.09 points in gain. A little over 7 percent gross gain. That does not include any dividends I would have received.
In an earlier blog post, I said we were not surprised by the market downturn. We knew it would happen. We didn’t know when. We did not know what would trigger the selloff but something, sometime, someday, would. It always does. So far the redeeming truth is the market makes a comeback and goes up.
There are always bulls and bears. One commentator I used to read was always a bear. He saw doom and gloom in everything the market did. What is the opposite of “rose colored glasses”? Dark brown? Not a good outlook on life.
The cartoon proves the point that this is not the first volatile market we have experienced. This will not be the last time we have a volatile market. They come along all the time. We get lulled into a false sense of security as the market rises. Some people come to believe they are prescient and prognosticate ad nauseam.
In a future blog post I will address (again) how to be better prepared for this volatility. Still too early to scold! But not too early for us to review your investments and financial plan through a Webex (of course). Give me a call or e-mail.
Please enjoy David Clayton Thomas (and you thought only serial killers had three names) singing “Spinning Wheel.”
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.