As soon as the COVID-19 virus escaped China, the problem became global. Exchange indices like S&P 500 rushed down, on their way devastating the wallets of greedy investors who filled their portfolios with stocks at their all-time highs.
It has been a week since I posted my previous article but the S&P 500 stock index has managed to decline from 2800 to the low of 2475. On the whole, since February 20th, the decrease in the S&P 500 has amounted to 28%, which is the greatest decline of the index in the last 10 years. The current situation can easily be called a crisis, and its reason is not some overheated economy or a bubble in some sector but a virus.
In an article posted in April, we expected the S&P500 to reach a record high and then correct, with the investors seeing no reasons for the index to go further up.
The last week Fed meeting decided on the key short term interest rates. The market players are always eying this event, focusing on the future economic outlook commentary.