Understanding Market Corrections

Rattled by the Market Drop? You’re Not Alone

We witnessed an extraordinary move in the financial markets on Monday, March 9.

The Dow Industrials lost over 2,000 points, as Coronavirus fears continued to worry investors. At the same time, oil prices lost nearly 25 percent, on news that Saudi Arabia was dropping crude oil prices and raising production as well. Meanwhile, the 10-year Treasury bond yield touched an all-time low of 0.318 percent during the trading session, as unnerved investors looked for some stability.[1]

In times like this, I frequently hear that some find it difficult to stay committed to an investment program when fear has gripped the financial markets.

While present market conditions may have you feeling uneasy, our current advice is to do nothing. Yes, you read that right — the best move is almost always to wait it out. We have worked together to position your assets to help weather the storm, and you can almost always count on brighter days ahead.

In the meantime, this guide-Understanding Market Corrections, covers things you can do to be prepared for a recession. If this prompts any additional questions about your current strategy, be sure to let us know.

If you’re worried about what would happen to your retirement in a recession, remember: that’s why you have us! As your financial advocate, we are here for you. If you have any questions or concerns, we encourage you to call us at 301-345-1635. We will work with you on an individual and personal basis and help you navigate these uncertain times.

Anticipating the potential impact of the Coronavirus, please know that we have contingency plans in place to prevent service disruptions and to ensure the continuity of the services you need. We also have telework options and the ability to establish alternate work locations for our team members.  

We are laser-focused on doing all that we can do to ensure everyone’s safety and to continue to serve you seamlessly. SFG has more than 25 years of experience, and we have weathered challenging times before. We are committed to using our experience to serve you best and to continue to earn and keep your trust.

Footnotes, disclosures, and sources:

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.

[1] CNBC.com, March 9, 2020