Today the S&P 500 was down another 3%. It broke support at the 100dma and is down about 8% from the peak…approaching a technical correction. The VIX topped 30.
Where’s the bottom? I have no idea. I bought again today (US Broad Market Index SCHB).
During the 2018 CRASH, I bought multiple dips because I thought the likelihood of a recession was negligible. (see Fear of Recession Greatly Exaggerated ) I didn’t know where the bottom was, but I knew over time the market would recover.
Those are my same thoughts today. I don’t know how badly the market will be hurt by the COVID-19 virus in the short run, but long term I see prosperity. Consumer demand may be deferred, but it won’t be destroyed. Monetary policy is too easy and energy costs are too low. Consumers will spend and corporations will make profits.
If you missed yesterday’s podcast, you can listen here: https://www.wealthsteading.com/308