March 18, 2020. We are in the process of trying to sell ALL positions in the Core Portfolio, EXCEPT for oil/energy and the corporate bonds.
This is D-Day. Prices are COLLAPSING. As everyone knows we are in retirement and cannot afford to lose everything. If you are younger and can endure the pain to wait a year or two to recover, that is a good choice as you will continue to collect dividends.
There are two Coronavirus cures that are being tested. If we see these in widespread use, the markets would probably take off to the UPside.
The S&P 500 index has now plunged 29% in the 18 trading days since the peak in February 19 and is below where it had first been on March 1, 2017 – which was over three years ago. In other words, the S&P 500 unwound three years’ worth of gains in 18 trading days.
Another way of looking at this: Over the three years from March 1, 2017, through the peak on February 19, 2020 (3,386), the S&P 500 had gained a blistering 42%, all of which are now gone.
The FED is trying but nothing is working.