Coronavirus and Market Update as of March 9th 2020

Coronavirus and Market Update as of March 9^th 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