Page 28 - AreaNewsletters "April 2020" issue

Jack Be Click Jack of All Macs Authorized Apple Repair
The Stock Market
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s of the deadline for this article, on Monday, March 9th the market experienced a dramatic 7% slump in stock prices. This was driven in large part by growing Coronavirus fears and developments within OPEC to abandon supply side production curbs to support higher oil prices.
While history never repeats and past returns are not predictive of the future, when we have seen similar market corrections based on pandemic fears or some other “shock to the system” in the past, stock prices have always recovered eventually. Often, this market recovery is sooner or faster than many investors expect, and it is extremely di cult to anticipate when or how the market will “bounce back.”
In Colorado, 17 presumptive Coronavirus cases has resulted in declaration of a state of emergency. Terms such as “social distancing”, reducing the probability of contact between people, are being contemplated as policy. Extended school closings or transition to online learning after our spring break appear imminent. Certainly, such developments locally and globally at a minimum indicate signi cant negative impact to economies worldwide.
It is extremely difficult, and frequently counterproductive, to make investment decisions or position portfolios around speci c market timings or predicted outcomes of geopolitical events. This holds especially true when multiple and signi cant sources of geopolitical and
April 2020 • Castle Rock “AreaNewsletters” 28
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