Market Commentary March 13, 2020
The global market selloff accelerated this week as the number of new coronavirus cases showed no signs of slowing in the U.S. and Europe. To make matters worse this week, the Saudis and Russia announced an oil price war sending a shock wave through the equity and credit markets. The damage to the equity markets has been extreme. Thursday’s 9.5% decline was the worst one-day percentage decline for S&P 500 Index since the October 1987 crash where investors suffered a 20% decline. Global equity markets are now officially in a bear market, defined as a 20% decline or more and marked the end to the decade long bull market run that started on March 6, 2009 in the U.S.