The stock market may get worse before it gets better, but it will get better
by Tim Clift
Stocks have had a terrible start to the year, and things may get worse. But long-term investors may find opportunities at discounted prices.
Through the end of February, the S&P 500 SPX, +1.90% suffered a loss of 5.5%. The small-cap Russell 2000 Index RUT, +1.41% fared even worse, sinking 9%. While both indices have pared some losses in recent weeks, investors are still shaken.
What’s surprising is that stock market mavens are even harking back to 2008, a year of worldwide economic crisis. Are stocks really that bad? Is the oil crash going to create the same level of economic chaos as the housing crisis did? Or are we all still suffering from post traumatic stress caused by the chaos and destruction wrought in 2008, and feeling the flashbacks during this bout with volatility?