On Feb. 25, while public health specialists were cautioning of the possibility of a global, life-altering pandemic, National Economic Council Director Larry Kudlow informed Americans to go out and buy stocks.
” The virus story is not going to last forever,” Kudlow stated on CNBC “To me, if you are a financier out there and you have a long-lasting perspective, I would suggest really seriously having a look at the market, the stock market, that is a lot cheaper than it was a week or more back.”
” This thing will run its course,” he added.
As we now understand, the rocky market in late February wasn’t a blip but the early phases of a full-on crash. Most of the stock market gains made under Trump’s presidency have been eliminated by the coronavirus sell-off.
So how would you have constructed out up until now if you followed Kudlow’s guidance?
Since end of day Thursday, the Dow Jones Industrial Average has fallen 26%considering that market close on Feb.25 So if you had actually pumped $1,000 into an index fund tracking t