In the last week of February 2020, things were looking good for the Dow Jones Industrial Average. With the stock market on its longest bull run in history, this long-respected index looked like it was well on its way to a new record — 30,000 points — and perhaps beyond. Then, on March 11th, 2020 the World Health Organization declared COVID-19 a global pandemic, sending domestic and global markets into chaos. With crucial manufacturing facilities in China experiencing supply chain problems, corporations like Apple quickly began feeling the sting. Investors picked up on this uncertainty, which sparked a massive selloff. Over the course of just a few weeks, the volatility of the Dow Jones sent the index from its highest point ever — 29,551 on February 12th — to just 18,591 on March 23rd. At that point, even the most optimistic investors were skeptical that the Dow would ever hit that mythical 30,000 mark.
Today, almost 9 months after the pandemic began, the stock market has mounted a speedy rebound due to a number of factors, including massive asset purchases by the Federal Reserve, a boom in the technology sector, and an unprecedented economic stimulus that put money into the hands of Americans out of work during nationwide quarantines. Despite this direct economic boost and other efforts to keep the economy alive, the Dow has failed to reach new highs while other stock indices have set new records. Whether or not markets are strong enough to sustain these new records remains to be seen.
On August 19th, the S&P 500 put up a new record high, even as a Federal Reserve report stated that the COVID-19 pandemic would continue to “weigh heavily” on the U.S. economy. That same day, the Dow reversed course, losing 0.2% of its value over the day’s trading. Conspicuously absent from the Fed’s report were announcements about any new asset buys; that fact, coupled with stalled negotiations on Capitol Hill where lawmakers were debating a second stimulus package, made investors shy away from taking long positions. In late August, the Dow rallied again but trailed off just before reaching new records. It seems that for the time being, the index is a bit shy about crossing the 30,000 mark. Now, investors and economists alike are left to wonder if it will ever reach new records and get back to the stellar performance it experienced in the period following the crash of 2008.
At Crash Proof Retirement®, we know all too well that the stock market is more complex and volatile for retirees and the numbers don’t lie. The Dow could very well reach 30,000 before the end of 2020; however, it could just as easily come crashing down again, putting retirement savings at risk like it did in 2008 and earlier in 2020 at the onset of the COVID-19 pandemic. The stock market is an inherently unpredictable beast and if you’re not protected, the smallest bit of news or a tweet from the president can send your retirement savings rising or falling rapidly overnight. That is why it’s so important for investors to seek out retirement planning products outside of the securities industry in order to remove the risk of having their retirement savings wiped out entirely. Products like mutual funds, target date funds, and even some alternatives to the stock market may be advertised as safer options, but if they contain securities, they’re only putting your money at risk.
The good news is that you can get your money off the volatile stock market and invest it into safe alternatives that guarantee the protection of your principal investment without the risk of losing a penny. At Crash Proof Retirement®, we’ve educated over 5,000 consumers nationwide about these alternatives and designed proprietary retirement planning products tailored to each investor’s financial needs and goals. To find out more about the exclusive Crash Proof Retirement® System, visit https://www.crashproofretirement.com or call us today at 800-722-9728 to speak with a licensed retirement phase expert and schedule a meeting to learn more about our revolutionary Crash Proof Retirement® Vehicles.