The Latest Update
Since last month’s Market and Portfolio Update on the Coronavirus, the World Health Organization (WHO) declared COVID-19 a pandemic as the virus spreads further around the globe. Investor fear also spread worldwide, with the domestic S&P 500 Index dropping nearly 20% from it’s February highs; entering bear market territory as of this writing. A closely watched measure of turbulence in U.S. stocks, the CBOE Volatility Index (the “fear index”), is near its highest level in a year. Contributing to volatility was a recent dramatic drop in crude oil prices as Saudi Arabia unveiled plans to ramp up its production levels even further only days after it instigated a price war with Russia after discussions broke down. This event especially spooked investors in energy holdings as well as markets at large.