Coronavirus and Market Update as of March 9th 2020
Coronavirus:
- Active virus cases currently sit 25% lower than the peak set on February 17 th of 58,747
- While case counts increase in Western Europe and the US, China has reported its first day without a new community transmission (ex-Hubei).
- South Korea had new cases rising less than 4% on Sunday to 7314.
- Restriction of activity has a very large impact on transmission.
- Over half of countries across the world have reported at least one case, and cases in Spain nearly doubled overnight.
- Italian cases grew over 25% on Sunday and that country is now the largest disease cluster outside of China.
- The elderly remain by far the most at-risk based on all data reported so far around the world.
*Referencing March 9 th 2020 Bespoke Morning Lineup
When the stock market does drop, how long does it take for prices to recover?
- In general, the stock market is incredibly resilient in its recoveries from drops. In 7 of 11 historical drops, it only took one year for the S&P 500 to recover to its previous all-time high.
- Market drops have become less frequent over time, but the severity of the drops has increased.
- Historically, investors who have been able to avoid selling during drops have been rewarded by the market over the long haul.
*Referencing Four Pillar Freedom article on June 21 st 2018: Here’s How Long the Stock Market has Historically Taken to Recover from Drops