Is It Time To Buy Stocks Or Is The Market Heading Even Lower?
March has undoubtedly been one of the most volatile months investors have seen on the markets, perhaps ever. The Dow Jones went from more than 27,000 points early in the month to a low of barely 18,000 points weeks later. It's been a very sharp decline for the Dow, which is normally fairly stable. The last time there was a big drop in the markets was in the fall of 2018. Back then, the Dow dropped below 22,000 points from a high of more than 26,000 points a month earlier.
The S&P 500 crashed more than 15% in just the past month; in 2018 even with the large sell-off toward the end of the year, it was down just 7% for the whole year. What's happening in the markets now is much more severe than 2018 and anything investors have seen since the financial crisis. But the big question many investors are likely asking is whether the markets have reached a bottom and if now is a good time to buy, or should they wait for stocks to slide even further down? Let's take a closer look to see which approach investors are better off with today.
The coronavirus pandemic is to blame for the recent panic not just in grocery store aisles but in the stock market as well. If people stay indoors, it doesn't do businesses a lot of good if they're not able to operate and there are no customers to buy their products and services.
Source Fool.com
