It’s easier than you’d think to miss big stock market moves. A knee-jerk to avoid the carnage during times of tumult can cause investors to find safety on the sidelines. Often, the best days and the worst days are clustered together, making for a tricky needle-threading act.
We were reminded of this phenomenon during the pandemic-induced panic in March 2020. The worst day occurred on March 16, when the S&P 500 fell 12.0%. Investors also experienced a 9.5% drop on March 12 and 7.6% drop on March 9. Those that stayed the course also experienced some of largest one-day gains. The S&P 500 gained 9.4% on March 24, 9.3% on the 13th and 7.0% on April 6.
No doubt, the large gyrations during the shutdown phase of the pandemic made it a rough ride, but those who stuck with stocks made up their losses quickly, reaching the high-water mark by August. The S&P 500 index has bounced and then some, gaining more than 30% from the pre-pandemic high set on February 19, 2020.
Kovitz Investment Group Partners, LLC (“Kovitz”) is an investment adviser registered with the Securities and Exchange Commission. This report should only be considered as a tool in any investment decision and should not be used by itself to make investment decisions. Opinions expressed are only our current opinions or our opinions on the posting date. Any graphs, data, or information in this publication are considered reliably sourced, but no representation is made that it is accurate or complete and should not be relied upon as such. This information is subject to change without notice at any time, based on market and other conditions. Past performance is not indicative of future results, which may vary.