Stocks are sliding again. The S&P 500 had its largest drop in nearly two months.
Take a look at today’s news, and you’ll see the usual market culprits.
Coronavirus worries are back. The U.S.’s seven-day average of new COVID cases hit an all-time high, and infections are rising in other parts of the world. It’s also getting chilly outside, which could fuel COVID’s spread as people gather indoors. The timing of a vaccine continues to be crucial, but elusive, adding to concerns about the economy.
Stimulus speculation isn’t helping matters. Congress’ back-and-forth on another round of fiscal aid has been going on for months, and it’s getting old. Even though we’ve seen some hopeful signs of progress, the market is starting to believe that we won’t get more stimulus for a while. Parts of the economy desperately need it, too. Oh yeah, and there’s a presidential election in just eight days.
Put it all together, and the setting feels eerily familiar. In fact, the S&P 500 hasn’t fallen this far on a Monday since the big drop in March.
But try not to let this (or any) crazy day deter you from your investing journey. We’re here to help.
We know there’s a lot on your mind, so we’re here to help you sort through the noise. Check out this video for Chief Investment Strategist Lindsey Bell’s thoughts on today’s market action.
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Above all, we’d like to remind you to stick to your plan when markets are going wild. While there are lots of concerning issues that need to be addressed, we’re still optimistic on stocks over the long run. Just remember that there may be ups and downs along the way.
Lindsey Bell is Ally’s Chief Investment Strategist, responsible for shaping the company’s point of view on investing and the global markets. She is also President of Ally Invest Advisors, responsible for its robo-advisory offerings. Lindsey has a broad background in finance, with experience on the buy-side and sell-side, in research and in investment banking and has held roles at JPMorgan, Deutsche Bank, Jefferies, and CFRA Research.
Lindsey holds a passion for teaching individuals how to become successful long-term investors. She is a contributor at CNBC, and frequently shares her insights with various publications including the Wall Street Journal, Barron’s, MarketWatch, BusinessInsider, etc. She also serves on the board of Better Investing, a non-profit organization focused on investment education.
The opinions expressed here are not meant to be used as investing advice. For more information, visit our website.