Up, down, and all around! The market does not know which way it wants to move!
In an interesting move today, the Federal Reserve cut the interest rate by 50 basis points. Though the market initially shot up, there was a massive sell off right after. This shows that people don’t buy into what the Fed is trying to do. Though they are using the tools they have to the best of their advantage, we might see more possible rate cuts in the coming months. All of this commotion the market is seeing is mainly driven from the severity of the Coronavirus spreading worldwide. Just today it was announced that there are now nine deaths from the virus within the United States. Alongside the virus, it is Super Tuesday. With voters across the country rushing to their nearest polls to vote, who knows what this election will bring in regards to the market. Either way we know this year will be filled with more volatility than usual. With the virus, elections, and Fed intervention into the markets, it is important to realize the severity of outside variables when it comes to investing. No one truly knows what the market will do, and certain things like this are out of our control. Always be aware of what’s going on and never have a bias towards what you feel the market will do.