February 2020 Market Update

The market has taken a sharp downturn this week following the new all-time highs on February 19th. Over the past few days, the market has fallen over 10%, making it the fastest “correction” in stock market history. The market movements have been breathtaking and relentless with no ability to “get out of the way.” The majority of the media is blaming this correction on the rapidly spreading coronavirus, COVID-19. While the virus is certainly scary and will negatively impact the economy, the rapid fall in the market is really a reflection of the fragile market structure itself. As we have been warning, stocks were surging upwards in the face of growing risks. This created a situation where investor perceptions could change violently which we are now experiencing.

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