Is the Stock Market Recovering Soon, or Is This the New Normal?
Everyone wants the answer to this question these days. As the expanding coronavirus pandemic pushed the market into bear territory earlier this month, investors fled from stocks across industries. The Dow Jones Industrial Average is down 23% since the beginning of the year and is at its lowest level since November 2016. The S&P 500 has declined 21%.
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In the meantime, even efforts to support the economy haven't been enough to cheer the stock market. For example, the Federal Reserve on Monday announced a broad effort including purchases of Treasury securities in "the amounts needed to support smooth market functioning." The Fed will also buy corporate bonds and support the flow of credit to consumers and businesses. And still, the Dow and S&P 500 fell. The $2 trillion stimulus package could catalyze the U.S. market, but the progress from the cash injection could prove to be temporary if long-term solutions aren't found.
Source Fool.com
