Market Update | March 17, 2020

A new bear market, the marshmallow test, and why waiting is hard

At the time of this writing (Mon. 16th), stock market indices were down about 12% on the day and we have now entered into bear market territory with the S&P 500 down over 25% year to date. As scary as that sounds—and believe me, I know that doesn’t sound very good—I’d like to take a step back and objectively assess what is going on.

I believe that the markets want what we all want…a less partisan, smarter, and more effective government…but I digress. What the market really wants is some understanding as to how bad the virus is going to get in the United States and what the impact will be on consumers and businesses. As I said in one of my previous updates, the market hates uncertainty. Unfortunately, it is likely going to be weeks and perhaps months before any clarity or certainty can be had with regards to the virus.

So for now, the market is bracing for financial turbulence and economic uncertainty. One thing we have been watching is that almost every asset class was pushed lower by broad and indiscriminate selling across most of the major markets. Equities, REITs, cryptos, alternative assets, commodities, and certain segments of the Fixed Income markets have all been hammered during this sell-off… read full market update here