This week the financial markets stopped serving as a mechanism to discount the future correctly, this forced central banks and government around the world to take strong measures to balance the panic. It helped however the SPX closed the week at the lows. Today 1.5tr USD exited the market on the option expiration. This might lower the overall risk and volatility. Furthermore, pension funds will rebalance out of bonds and into equities to keep the allocation goals.
I do not know when or how we will reach the end, maybe is shorter than what the market is expecting. History tell me that proven rules, following a trading plan and diversification can protect wealth better than most the average professional investors. Panic can be the worse companionship during current events.
THIRD PARTY DATA:
The S&P 500 lost more than 13% week to date after dropping another 11.5% last week. The Nasdaq fell 12.6%. Both the S&P 500 and Nasdaq also had their worst weekly performances since the financial crisis in 2008. The 30-stock Dow is now 35.2% below its all-time high level from February, while the S&P 500 is 32.1% below its high.
If picture are not clear enough you can find it here:
https://www.cnbc.com/2020/03/19/stock-market-futures-open-to-close-news.html
Daily moves this week:
Historical Chart Long Term:
