ROAD TO RECOVERY PLAYBOOK
John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
After recording two double-digit drops in equity prices over the last three trading days, the global pandemic of COVID-19 has sent world equity markets into bear market territory. The result is a cumulative 30% drop in the S&P 500 Index in just under 30 days. Though daunting, once the market finds a bottom, which is where the index begins to consistently move higher than the previous market low—and we believe it is “when” not “if” the market finds a bottom—it may provide an attractive opportunity for long-term investors to consider adding risk to portfolios.