Similarly, if Rip Van Winkle invested $1,000 into the S&P 500 index on January 2nd - only to fall asleep until June 30th - what would his experience have been? He would have woken up to an online balance of $969. While it's never fun to see an account value down - he would have slept through the low point of $696 on 3/23.
While we might be a little envious of Mr. Winkle's strategy - This is another great reminder that staying the course offers the best change at recovery from a correction. Short term performance will not make or break your investment goals. Acting on short term performance can be detrimental to your long term plans.
Looking forward to the rest of 2020, there has been a solid foundation built for the uncertainty that still exists with COVID-19 and the November election. With record levels of global fiscal stimulus, a continued low interest rate environment and low inflation the economy is poised to weather what comes next. Most importantly, we remain diversified and stay focused on our long term goals.
