VOLUME 38 • NUMBER 15 • MARCH 5, 2020
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Coronavirus, stock drops and wise investing
Photo courtesy of Markus Spiske
BY DAVID MORRISON PROSPERION FINANCIAL ADVISORS
As I’m sure many of you are aware, this past week has been a difficult one for investors. The broad market indices have seen swift and dramatic drops, leaving many scared, confused, and upset. Make no mistake; it is mo-
ments like these that define all of us as investors. Fear of unknown dangers, like Coronavirus, can quickly snowball into an all-out panic. We’ve often said your behavior as an investor will ultimately have a far greater affect on your outcome than when or how you are invested. This is one such
moment. Since our emotions are hard to control, in times like these I find a little perspective goes a long way. As of this writing (Thursday evening, February 28), the Dow Jones Industrial Average is down 13 percent from its all-time high. No doubt that’s a significant amount, but
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perspective tells us that the last time we saw these levels were only six months ago. That’s right. In spite of all the drama and noise, the market has “plunged” to levels not seen in only six months. While scary and uncomfortable, this is normal. We’ve written time and again about how
historically the S&P 500 has experienced an average peakto-trough intra-year decline of about 11 percent. In other words, the S&P has dropped by 11 percent at some point during any given year, only to turn around and end up higher. Continued on page 7
March is ram month!
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