Broker Check

Market Recap (April 5 2021

April 05, 2021
Last month marked the one-year anniversary of the COVID Market Crash. March 23, 2020, was the low point of the market: the Dow Jones bottomed out at 18,592, the S&P 500 fell to 2,237 and the NASDAQ closed at 6,861. While the pace of this correction stunned even the experts, we were equally surprised by the swift recovery. As of the market close on March 23, 2021, the Dow Jones was 32,424 (74% increase), the S&P 500 equaled 3,889 (74% increase) and the NASDAQ was 13,228 (93% increase). What a difference a year makes!
We certainly have a way to go before all aspects of life return to normal. However, to quote our March 30, 2020 newsletter:
We believe stock markets could significantly recover in the second half of the year as any real economic impacts are short-lived. The U.S. was in one of its strongest economic positions prior to this and combined with the pent-up demand created by the recent measures, it is likely that we will bounce back in record time.
It is important as long-term investors that we do not overreact with our investments. A coronavirus recession may sound like a reason to sell, but it's not. We need to look forward with our investments, not backwards. Stocks typically begin to rise three to six months before a recovery. We believe we're already in that window. Stocks will begin to recover long before the pandemic effects begin to wane. The strongest bull markets are not built on a foundation of good news but on a fading of bad news.
Thank you for trusting us – not just with your precious assets, but the hopes and dreams that they represent. Thank you for following our advice and resisting emotional decisions. We are humbled by your faith and confidence.