The stock market precedes the economy, so the current decline in stock indexes is preceding the expected decline in economic growth (GDP). Since the stock market and the economy are slightly out of phase, it’s not uncommon for the stock market to begin rebounding as the economic data worsens.

The reason I’m posting this is, if you see that the market is down 30% now, it’s easy to think “wow it’s really going to go down in 2,3,4, etc months when this hits unemployment, GDP slows down, etc” but the reality is the market is reflecting that future data now, so it may be strongly rebounding just as economic data is at its worst.

Great example is 2009, the US economy was in shambles but the S&P finished the year up 26%. Yes it had a lot of room to run (-37% in 2008). 1987, a rapid market collapse similar to 2020, finished the year positive 5.25%.

15 year finance veteran, 2x degrees and I’m buying right now...

“At the bottom, stocks will be cheap and no one will care." -Bob Farrell