By: Dividend Sensei
By Ben Carlson
The S&P 500 fell 2.3% on Friday.
It was the first time the market was down 2% in a day since the end of September. Before that the last time we had a 2% down day was mid-May.
This one felt different though.
Most of the time the stock market is more or less random, especially on a daily basis. Investors often make up stories to justify the market moving up or down but this move lower was clearly caused by the emergence of a new variant of Covid.
No one knows yet if this variant will have a lasting impact or not.
I hate to admit it but my dumb finance brain didn’t really get nervous about it until I saw the stock market react negatively. The stock market has a decent track record throughout this whole ordeal.
Maybe it’s because it was the day after a holiday but seeing stocks get dinged again on pandemic news caused some flashbacks.
Even though it took the stock market to get my attention on this I’m not really worried about stocks in all of this. Even if we have a crash from current levels stocks will be fine eventually.
I’m more concerned about the psychology behind living through a pandemic for nearly two years.