Is Now a Good Time To Buy Stocks?

You are not alone if you’re an investor spending some sleepless nights scared that your savings may be lost, and wondering whether it’s time to just get out of the stock market. The extremely volatile day-to-day market swings are weighing on every investor’s emotions. 

Past market drops haven’t been quite as steep as the one we are experiencing. Defined as a 10% drop from the recent highs, this correction took just six days. And the bear market — a 20% drop from market highs — occurred in just twenty days.

But while the angle of the drop may be steep, a look back at other severe market declines shows it was a good time to invest. Given a long-term time horizon, this one should, too. 

SPY Chart

Business interruptions

It’s still too early to gauge the exact impacts the COVID-19 pandemic will have on these businesses. The ramifications will vary by company, and some will fare better than others. 

Disney had to close its amusement parks, cancel cruises, and the suspension or cancellation of sports leagues globally greatly affects its television programming and ad revenue. Home Depot relies on global supply chains that are being disrupted to some degree, and its store traffic may be affected as consumers are being told to stay home and avoid crowds. Coca-Cola is about as global as it gets. 

Before the coronavirus crisis, however, these great American companies were all making investments for the future, and seeing results.

Built to last

Home Depot is in the midst of an $11 billion investment program called… 

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