The selloff in the financial markets triggered by the coronavirus outbreak has been historic. Here are some statistics about March Madness 2020 in the stock market and what recent volatility means for long-term investors.

Darrow Wealth Management’s Managing Director, Kristin McKenna, CFP®, discusses how March 2020 was a historic month for the stock market.

It’s easy to develop a buy and hold investment strategy when the market is soaring – but there’s no harder time to stick to it than when the market is down. Especially when it’s down on historic proportions.

Notable takeaways and facts from March 2020:

  • On March 12th the S&P 500 closed down -9.5%. On March 3th the index closed at +9.3%. That is almost a 19% swing in 2 days!
  • March 2020 was the most volatile month ever: the S&P’s average daily swing was 5%. The last record was from November 1929 – the average daily swing was ‘only’ 3.9%.
  • When ranking the best and worst days for the S&P over the last 80 years, as of March 26th, 9 days in March 2020 made the list of top 31 worst days of all time and top 33 best days of all time. So before March was even over, nine days were historically bad or good!

Related:

How to Prepare Your Finances for a Recession or Prolonged Market Downturn

During Times of Market Volatility, Focus on What You Can Control

Where Can You Hide When the Market is Down?

Using Asset Class Diversification to Manage Risk

Analysis: How Market Volatility and Cash Flows Impact Your Account

Should You Keep Investing During a Recession? 

The U.S. is in a Bear Market. There Could be a Recession. But This Isn’t 2008.

Should You Go To Cash Until The Market Recovers Or Ride It Out?

Investing insights, delivered weekly.