The Underwriter's Insider May 2020

Page 8

ANALYSIS - FINANCIAL

“InvestmentZen”Credit: www.investmentzen.com

FOR LONG TERM INVESTORS THE FUTURE IS STILL BRIGHT

by Matthew A. Treskovich, CPA/PFS, MBA, CFP®, CMA

T

he first quarter of 2020 was a time investors will not forget. Stocks began the year on a positive note, reaching all-time highs in January and again in February. Market gains were quickly given back as the coronavirus pandemic and oil price war came to the forefront. Stocks fell in the most rapid bear market in history, declining over 30% by mid-March, before 8

The Underwriter’s Insider

In the short run, we expect the markets will continue to be volatile. The pandemic and containment measures have created uncertainty about the economy in the short run. For long term investors, the future is still bright.” Table of Contents

rebounding to end the quarter about 20% below the all-time highs. Times of market stress often bring extreme volatility to the financial markets. Daily moves of 3% to 5% or more have become common in recent weeks. Long-term investors know that these kinds of outsized moves across the market usually don’t reflect long-term fundamentals. During the early part of a market correction, market declines MAY 2020


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