Investing in 2019 was fairly easy. The Standard & Poor’s 500 Index (S&P) returned nearly 28% for the year with only a few bumps along the way. Today, however, we're faced with a very different market. More and more uncertainties are seemingly hitting the headlines every day, from the global spread of COVID-19 and its potentially wide-spread economic impact, to a historically low Treasury note, and plummeting oil demand, resulting in a 13% drop in the S&P year-to-date, substantially wiping out gains from the past 12 months.
With the financial markets’ ups and downs over a short period, it’s easy to spot patterns and just as easy to create patterns, if you so choose. However, long-term returns have historically been very favorable to investors who stick to their investment strategies during times of volatility and avoid the temptation of attempting to time the market.
You may be fearful today, with equities crashing and the 10-year note at historic lows. COVID-19 may be new, but market shocks are not. They don't have to be something of which to be fearful.