In February of 2020 the S&P 500 made a new all-time high of nearly 3,400 points. Then the selloff began that would see an intraday low below 2,200 points. That is a 35 percent loss. But the market has since rebounded recovering to 2,846 points as I write this. This represents an almost 30 percent gain from the low, and has cut the market’s loss in half. In my view, it’s a great spot for investors who have not gotten defensive to sell some stocks and raise cash.
ICangles Investment Post
The future for U.S. stocks over the next decade appears worrisome, regardless of the impact of the Corona Virus. Why? Because valuations matter. And stocks at the end of February were priced for perfection. Any significant negative development was poised to drive them lower.
The COVID-19 Virus that shutdown the U.S. economy has certainly qualified as a significant negative development. From that February peak, the U.S. stock market as measured by the S&P 500 has already lost about a quarter of its value. But even if stocks had continued to climb in the near-term, without the virus emerging, the decade plus outlook was still poor.