The COVID-19 pandemic has caused unprecedented volatility in recent weeks that has investors and traders scrambling to assess the economic and market impact of the aggressive containment measures.
The dizzying volatility over the past few weeks has left all of our heads spinning as we wait for containment efforts in the United States and elsewhere to help slow new cases of COVID-19 (coronavirus). Public health is of course our primary concern. But beyond that, from an economic and market perspective, there are many difficult but important questions:
I hope you and your family are well! Yesterday, March 9th, was the eleventh anniversary of the final bottoming process of the bear market from 2007 to 2009. How ironic that the world elected to celebrate this iconic anniversary with, you guessed it, another panic attack.
In a move in which the timing was more compelling than the decision itself, the Federal Reserve (Fed) announced this morning that it unanimously decided to cut its policy rate by 50 basis points (0.5%) from the 1.5-1.75% range to the 1-1.25% range. The surprise move marked the Fed’s first rate action outside of a regularly scheduled meeting since October 2008.