Anyone saving for retirement has been tested twice in the past 18 months. In a three-month slide that ended on Christmas Eve 2018, the S&P 500 stock index avoided a bear market in name only; the 19.4% loss in the S&P 500 was just a hair less than the 20% loss that counts as an official bear market.
That turned out to be a short-lived test. In the following five months the S&P 500 gained more than 26% and ended 2019 up more than 31%.
The latest test is still ongoing. From Feb. 19 into the second week of March, the index fell more than 25% amid the realization that the spreading coronavirus is going to disrupt global economic growth.
Whether you ace these tests, or the ones guaranteed to occur in the future, is the key to your financial security. Stay calm, no matter your age.
Not yet retired?…
