Sharp declines cause anxiety but in truth, historical data shows that recoveries from such lows happen every time. What you need to know is that the timing of the recovery and the speed can differ and can’t be predicted.
Coronavirus outbreak, weak GDP growth, fiscal deficit, and rising inflation dominate February
At the risk of sounding pedantic, I would like to remind my fellow investors of only one thing. Equity is ownership of companies involved in the economy of our nation and the world. Many of the companies you and I own indirectly through equity mutual funds have seen terrible times that many of us aren’t old enough to remember.
Risk shows up infrequently, but it is high impact. This is why one must always be aware. In the current set of events, it’s the risk attached to bond investing which has had a greater impact than equity investing. Understanding both the risk of bond investing i.e., credit risk and the risk in equity investing i.e., risk of quality, are important.