I’m retired. My retirement money, aka my “nest egg,” is invested in several Individual Retirement Accounts (IRAs) and 401(k) plans. And my IRA and 401(k) funds are invested in the stock market. So I have to admit that when I look at the chart shown above and see my retirement savings slip slidin’ away, I am, well, concerned.
The Dow industrials tumbled 1,190.95 points today, or 4.4%, to 25,766.64. This brings the Dow’s slide this week to more than 3,200 points. So far this month, the market has slid 13% from a February all-time high of 29,568.
I am not a financial guru, and I am not sure what exactly a 3,200 point drop in the Dow industrials means. But I do know that since the beginning of this month, my “portfolio” is down about 7%. And when it comes to my retirement nest egg, “down” is not a word I want to hear.
Why is this happening? Why is the stock market plunging at a record pace? Well, this latest slide began on Friday, after news that the coronavirus was beginning to spread outside of China. By Wednesday, the disease had spread to Japan, South Korea, Italy, Iran, the United States, and numerous other countries.
Then late on Wednesday, Trump held a news conference and failed to reassure investors that his administration was taking steps to contain the virus.
And today’s drop, the largest single day drop ever in the Dow, is probably a testament to the confidence the markets and the public have in Trump’s new coronavirus czar.