Here's What History Says About Investing in Recessions
The U.S. economy entered its first recession in over a decade in February, and many investors might be inclined to stay on the sidelines. And it's not hard to see why -- during recessions, the market tends to take investors for a roller-coaster ride.
The current recession that resulted from the COVID-19 pandemic is no exception. Nine of the 10 largest single-day point gains and eight of the 10 largest single-day point drops in the S&P 500 have occurred since February. And all 10 of the largest intraday point swings of all time in the S&P 500 occurred in March.
It's common knowledge that nobody can accurately predict the day-to-day direction of the stock market, but when 5% moves in either direction are happening regularly, it can be quite nerve-racking to even think about putting new money to work.
Source Fool.com
