Does economic performance always correlate with stock market performance?
The COVID-19 pandemic quickly turned into one of the biggest shocks to the global economic and health care systems in modern history. In March as the spread of the virus brought the economy to a near stop, US Stocks slid more than 13% and had fallen close to 21% for the year1. As short-term uncertainly increased, we stressed remaining disciplined to your investment strategy by looking past the headlines and recent market conditions to maintain a long-term perspective. Remaining disciplined, or staying the course and sticking to your investment plan, may be difficult through market dips and swings, but it also doesn’t mean standing still.
Stock market slides over a few days or even months like what we experienced in February and March of this year may lead investors to anticipate a down year. Is that always the case?