Dear Valued Investor:
It’s been a tough week. The number of coronavirus cases have continued to increase globally, and new cases have been confirmed in the United States. Countries are making progress with containment, but those efforts also have resulted in a reduction in economic activity, adding to market uncertainty.
We can empathize with anyone who is nervous. It’s impossible to predict how many people will be affected or how containment efforts may impact the economy. Prospects for a pronounced economic slump and a wider outbreak have led many investors to sell first and ask questions later. Last week the S&P 500 Index suffered its worst weekly decline since the financial crisis in 2008, and the fastest 10% correction ever recorded from a record high. That’s a fast move from a high to a low.