Many of you may remember the spring of 2020, we certainly do! That period, surprisingly, reminds us of why we stay invested even in hard markets.
On February 19th, 2020 the S&P 500 index began a rapid decline on the news of Covid-19 falling from 3370.29 to 2237.40 by March 23rd and everyone remembers that fall. What’s harder to remember is that in the next 3 days it regained ground landing at 2630.07 on March 26th and had regained all of it’s lost ground by August 12th during a period of divisive news and recurring lock downs throughout the US.
To put things into a little more perspective, if you had invested with perfect timing on the 23rd a $10,000 portfolio would have grown to $16,980 as of September 23, 2022 while if you had missed just those 3 days and invested on the 26th your value would be $14,450. A difference of nearly 15%. Of course, you can’t invest in an index and believing that you will have “perfect timing” is … shall we just say optimistic. Unless of course you are predicting the past which is notably easier than predicting the future.
Why do I bring this up? During that time period in March of 2020 we were in the midst of an onslaught of horrible news. Certainly not the environment that makes one think of a good market!
Cochran Mickels watches the markets and economy closely and attempts to make prudent shifts but never assume we know the future so those shifts are small while we stick to the overall plan.
You’re not alone, we feel the same fears, excitements, joys and yes pains as you. We use disciplined and time-tested procedures to keep your plan on track to success.
Franklin Ochs, CFA®
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc, a Registered Investment Advisor. CochranMickels and Cambridge are not affiliated.