• Skip to main content
  • Skip to primary sidebar

Cade Hildreth

What You Should've Learned in School

MENUMENU
  • Finance
    • Investing
    • Increasing Income
    • Entrepreneurship
    • Financial Q&A
  • Real Estate
  • Fitness
    • Nutrition
  • LGBTQ+
    • Confidence
  • Podcast
    • Audio Feed of the Website
    • "What You Should've Been Taught"
  • Testimonials
  • About
    • About Cade
    • Rugby Bio
    • Instagram
    • Coaching
    • Contact
You are here: Home / Finance / Has the Stock Market Hit Bottom Yet? (COVID-19 Predictions)
Has the Stock Market Hit Bottom Yet? (COVID-19 Predictions)

Has the Stock Market Hit Bottom Yet? (COVID-19 Predictions)

April 12, 2020 By Cade Hildreth Leave a Comment

With the COVID-19 pandemic raging worldwide and the total case count surpassing one million worldwide, the stock market entered nearly total free-fall in March 2020.

Stock Market Freefall

The plunge began on Monday, March 9, with the largest point drop for the Dow Jones Industrial Average (DJIA) in recent history.

Shortly thereafter, on March 12 and March 16, there were two more record-setting point drops.

In total, these three days —which happened within the span of a single week—were three of the worst stock market point drops in U.S. history.

The cause of these stock market drops is global terror about the spread of COVID-19, plunging oil prices, and Federal and State mandates creating widespread business, school and event closures, among other factors.

Only two other days in U.S. history have had more dramatic single-day percentage falls.

One was Black Monday on Oct. 19, 1987 (22.6% single day decline) and the other was December 12, 1914 (23.52% single day decline).

$2.2 Trillion Stimulus Bill

Despite this massive market plunge, the U.S. stock market did rebound substantially in response to the $2.2. Trillion Stimulus Bill passed March 25th, 2020.

The S&P 500, which is a market index that tracks 500 large companies listed on stock exchanges in the U.S., recovered about 40% of the freefall that it took in early-to-mid March.

S&P 500 Stock Market

Designed to provide unprecedented economic relief, the stimulus bill will pay $1,200 to most Americans (the 83% whose adjusted gross income is under $75,000), plus an extra $500 per child under 17 years of age.

It also has more than $377 billion allocated to assist small businesses. And, it will automatically pause federal loan payments for a six-month period ending September 30, 2020.

Plus, the bill includes provisions limiting foreclosures on mortgages and evictions of renters. For example, it can allow for forbearance of a federally backed mortgage for up to 60 days, with a possible extension of four more periods of 30 days each, due to COVID-19 related hardship.

Despite this fear-based sell-off and the subsequent rebound, I don’t think the U.S. or the global stock market has hit bottom yet.

I think further stock price drops will happen as the prolonged scope of this outbreak takes its tolls on businesses and governments worldwide.

In my opinion, this economic recession is going to get much worse before it gets better, because the science of the COVID-19 virus (SARS-CoV-2) is complex.

Dealing with its impact on a global population of 7.2 billion human beings is going to take:

  • Diagnostics
  • Prevention
  • Vaccine(s) – While COVID-19 appears to be a relatively slow mutating virus, it is an RNA virus that does have the potential to mutate
  • Large-scale manufacture and administration of approved vaccine(s) to a global population of 7.2 billion people
  • Treatments for patients who do contract COVID-19 and its related complications, such as respiratory and immune complications

What Should You Do with Your Stock Holdings?

If you want to get out of the stock market with only minimal losses, you could sell now while the markets have rebounded somewhat (at the time of this writing).

However, you will lock in losses if you sell, so you need to weight the pros against the cons.

On the other hand, if you sell now with a small loss, you’ll likely be able to buy back in at a lower price at some point in the next 6 months or so.

Thus, your decision to buy or hold should be driven by how closely you want to watch and time the market and your tolerance for risk.

Personally, I think the U.S. stock market will drop back down near its previous low reached on March 23, 2020. At some point, it will probably will go even lower. But, remember, this is not financial advice. I am simply making an educated guess based on the indicators that I see around us.

To keep your emotions of out your decision making, I would recommend that you either:

  • Use a buy limit order to pick up shares of stocks, ETFs, or index funds at a specific price that makes sense to you (for example, the previous lows reached in March 2020). 
  • Or, you dollar cost average into the stock market over the next 12 months. Dollar cost averaging just means that you periodically buy a fixed dollar amount on a predetermined schedule, such as $100 every two weeks. Naturally, you’ll get to pick up more shares when prices are lower (a better value) and fewer when prices are higher (over-priced).

Or, if you want to take a hands off approach and don’t need your money for years, you could leave your investments untouched and ride out this entire economic cycle.

Of course, this last approach is for the disciplined investor, because it requires you not to get emotional and react out of fear for what is likely to be a several year period. To help with this, remember that while your stock values will be suppressed for a while, the only thing that impacts your life is the price of your assets at the time that you sell.

How to Play the Stock Market?

Instead of trying to figure out exactly which stocks to buy, most people would do well to play the stock market as a whole using low cost investment options.

For example, you could use ETFs that track the market, like the Vanguard S&P 500 ETF (VOO) or Vanguard Total World Stock ETF (VT). These ETFs have very low expense ratios of only 0.03% and 0.08%, respectively.

This is important, because the best performing investments are the ones with the lowest management costs. Historical data clearly shows that management fees eat away at your stock market gains, so keep them low at all times.

Plus, almost no one (not even the “pros”) ever outperforms the market, so you might as well track it.

While your decision to buy or sell is highly personal, what I can say is that the upside of this market slump is that if you have cash available and want to learn investing, you can now learn this skill with less downside and lower prices than only a few weeks ago.

What do you think will happen to the S&P 500 or the DOW? Let me know in the comments below.

Are we connected yet on social media? If not, let’s make it happen: Instagram | Twitter | Facebook | Pinterest

5 / 5 ( 2 votes )

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Filed Under: Finance Tagged With: Coronavirus

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Instagram
  • Twitter
  • Facebook
  • LinkedIn
  • Pinterest

Cade Hildreth“As an LGBTQ+ entrepreneur, real estate investor, former USA Rugby Player, and fitness fanatic, I’ll teach you what your parents and teachers should’ve taught you, but didn’t know themselves.” -Cade Hildreth

Want to get weekly lessons to your inbox? Subscribe here.

Or, listen to Cade’s articles on the go as a Podcast.

cadehildreth

7 Reasons To Embrace the Pull-Up ‎️🔥The p 7 Reasons To Embrace the Pull-Up ‎️🔥The pull-up can…1. Be done w/o any equipment
2. Has dozens of variations
3. Builds MASSIVE pulling strength
4. Increases grip strength
5. Strengthens your entire upper body
6. Improves your posture
7. Sculpts your coreWhat do you love about it and why? ⬇️
🏡How To Buy A Home For No (Or Very Little) Mone 🏡How To Buy A Home For No (Or Very Little) Money Down in 2021
.
As a real  estate investor, the single most common question I get is how to buy a house for little to no money down.
.
It's a powerful question, because getting into the real estate game for little to no money down is how most people get their start.
.
So, what’s the answer? 🤔
.
Simple...these 6 mortgages will be the secret to your success:- USDA Loans (0% down) – For borrowers in rural areas, usually with a population under 20,000.- VA Loans (0% down) – For military personnel. Can be used for a single home or a multi-unit property up to 4 units.- The HomeReady™ Mortgage (3% down) – For lower income borrowers, backed by the U.S. government via Fannie Mae.- Conventional 97 Loan (3% down) –  A low-down payment loan from Fannie Mae. To qualify, you can't have bought a home within the past 3 years.- FHA loans (3.5% down) –  For low-to-moderate-income borrowers. Requires lower credit scores than many conventional loans.- Piggyback Loan (10% down) – You put 10% down. Then you acquire a primary mortgage for 80% and a secondary mortgage for the remaining 10%.What real estate questions can I answer for you? Ask them below. ⬇️
.
.
.
.
.
.
#lgbtqia #lgbtqiaplus #lgbtqcommunity #lgbtsupport #queerpride #nonbinary #genderqueer #genderfluid #gays #lesbians #transgender #transgen #investments #finance #investmenttips #entrepreneurmindset #entrepreneurgoals #financialindependence #realestateinvesting #realestateinvestor #realestategoals #realestateadvice #realestateexpert #RealEstatetips #personalfinance
⚠️Success Tip: You don’t have to suffer to g ⚠️Success Tip: You don’t have to suffer to get a body that you love ⚠️It’s a myth that you have to suffer to get a great physique. It’s simply not true, as this pic features foods I love and eat on the regular: Pizza and Burgers.What is true is…1. It’s nearly ALWAYS best to make these foods at home, so you can control the ingredients.2. To keep the calories down, use low carbs flours/breads, lean meats, and if relevant, low-fat cheeses.3. It’s BEST to cook with healthy oils, like olive oil and coconut oil. Stay AWAY from vegetable oil, canola oil, and other cheap oils that are ultra-processed.Unfortunately, the unsaturated fats found in vegetable oils trigger pro-inflammatory cascades in the body and are high in omega 6 fats. As the risk of inflammatory diseases go up, so does heart disorder as well as mood disorders, suicide, and homicide. Yikes, right?4. It’s best to eat your carbs in the 1-4 hours post-workout. This is when your body is most likely to use them as FUEL instead of store them as FAT.During this time window, your body opens up channel receptor on your cells that allows for nutrients to get shuttled into your muscles.This powerful and nifty trick is known as “Nutrient Timing.”Were you taught these tips and tricks for eating the foods you love, without packing on the pounds? ⬇️
Consistency is the key. ✨🔥📷: @grantgirsk Consistency is the key. ✨🔥📷: @grantgirsky
⚠️ 7 Tips for a Leaner, Meaner Core ⚠️1. ⚠️ 7 Tips for a Leaner, Meaner Core ⚠️1. Embrace the "Big 3" compound lifts, which are the deadlift, squat and bench. They are exceptional for muscular development, because they require full body muscle recruitment. Seriously, there's no easier way to get stronger, faster, than to embrace these three lifts.2. Consider creatine. It's arguably the most studied supplement of all time and will facilitate both strength and lean mass gains for you.
3. Add a whey protein shake immediately post workout. It'll shuttle nutrients into your muscles and facilitate rapid recovery. (If you're trying to learn more about your whey protein options, either whey isolate or whey hydrolysate will work great.)4. Add an extra hour of sleep. High quality sleep accelerates weight loss, promotes muscle recovery, and prevents overeating. On an unrelated note, it also improves personal resilience and creativity. I've long thought my love of sleep is one of my personal advantages and it can be yours too.5. Eat within 30 minutes of waking. It'll regulate your hunger hormones, ghrelin and leptin, so that you make healthy food choices all day long.6. Swap high fat proteins (such as dark chicken, sausage, eggs, etc.) for low fat proteins (chicken breast, shrimp, egg whites, etc.) If your goal is to get leaner, this is an easy easy way to do it with minimal effort.7. Try out a standing desk. Prices on them have come down a lot in recent years. If you already have a desk, you can get ones that sit on top of a normal desk to provide standing desk heights—which is what I use and love. Standing desks are incredible for promoting core strength gains, for the simple reason that you're standing instead of slouching.Which tip will you try? Let me know below... ⬇️*Ring by @OuraRing
*Underwear by @Boipkg
💪🏽 5 Tips to Get Thicker Arms 💪🏽 . 1. 💪🏽 5 Tips to Get Thicker Arms 💪🏽
.
1. Work in a range of pulling AND pressing activities. Every muscle has a counter-muscle, so you’ll want to focus on training both.
.
2. Hit your upper body lifts (bicep curls, tricep extensions, etc.) from different ANGLES.
.
This prevents adaptation AND creates larger muscles by hitting all of the muscle fibers involved.
.
You can do this by bending over, sitting vs. standing, or changing your grip on the dumbbell or barbell.
.
3. Hit your big (compound) lifts first and train smaller muscle groups second your accessory work).
.
The reason to train compound lifts first is that you don't want isolated muscle groups that are pre-fatigued.
.
4. Train your biceps AND your triceps. Your triceps are about 2X as large as your biceps, so they need attention too.
.
While you’re at it, don’t forget your delts (shoulders) too. They merge into your biceps/triceps and add overall size.
.
5. It’s easier to build muscle if you’re eating a caloric surplus. You don’t want to go crazy here, because this can also lead to fat gain.
.
However, a caloric surplus of 100-200 calories per day can be an effective way to support accelerated muscle growth.
.
Which of these tips are you going to try? Let me know below. ⬇️
.
.
.
.
..
#lgbtqia #lgbtqiaplus #lgbtq🌈 #lgbtqa #lgbtqpride #lgbtqcommunity #lgbtsupport #nonbinary #nonbinarygender #gays #queerpride #tomboy #tomboys #trans #transgender #intersex #lesbians #lesbianpride #transman #bigender #ftm #mtf #genderqueer #genderless #genderneutral #theythem
Load More... Follow on Instagram

Recent Posts

Gender Spectrum

The Gender Spectrum: A Scientist Explains Why Gender Isn’t Binary

Ruby Rose

Ruby Rose: Her Life, Career, Surprising Facts You May Not Know

Options trading

The Complete Options Trading Guide: What You Need to Know

Facts about Gender - Pink and Blue

5 Facts About Gender: Stop Splitting Humans Into Pink and Blue

starting an emergency fund

Starting an Emergency Fund in 6 Simple Steps

Categories

  • Confidence
  • Entrepreneurship
  • Exclude
  • Finance
  • Fitness
  • Increasing Income
  • Investing
  • LGBTQ+
  • Nutrition
  • Real Estate

Contact Us | Terms of Use | Privacy Policy

COPYRIGHT © 2019 · CADEHILDRETH.COM | PHONE: ‪(202) 660-4705‬  | 800 CORPORATE DRIVE, SUITE 301, STAFFORD, VA 22554, USA