The recent pandemic has been the most devastating thing that every single trade has experienced. Every business got impacted by this COVID-19 pandemic. With the closure of various businesses and a huge loss to the stock markets, the trend was really hard to predict during this time. The stock market’s response to the pandemic was full of worries due to the volatility because of the traders who were involved in panic selling out of the falling market fear. The market dropped largely and the circuit-breakers throughout the market generated four times in the month of March itself. In the hope that the stock market will settle down, there was the safeguard pause trading for 15 minutes.
The volatile trend on the stock market after the pandemic
The pandemic was not common and the market trends were equally unexpected. The market in the US showed some really important and logic-defying performance during this period. With the investments coming down every moment because of the low demands, it was hard to keep the prices of the shares afloat. There was no theory of managing the market during pandemics and evaluating the news coming from economical sources of the country was inflexible. The whole stock market could not completely depend on that news trending from these sources as not every one of them was true.
The three important phases of the stock market and jump in the overall market
There were three absolutely unique phases of the market during the pandemic. From the very commencement of the pandemic, the rise of the S&P 500 by 3% lasted from January 30 to February 19. Then the market experienced the second phase, which showed a drop of 34% till March 23. After this, in the third phase, 42% upswing was seen from March 23 till the present day. Every phase of the trend discloses a puzzling connotation with the flashing news. This is because the covered market’s reaction is simplified through the reactions of the investors and their related stories.
Impact on investing due to pandemic
As the pandemic was not an event familiar to the people at all, it was hard for the market investors to predict the situation and pay heed to such news. But as soon as the pandemic news spread like wildfire, the more significant reactions were clear through the market prices that emerged gradually. The impact on investment could be seen as investors restrained from investing more and also involved in rapid sales.
Is it time to think of hedge funds?
Though the spread of COVID-19 was rapid and it hit the stock market as well, the hedge fund managers tried to get the benefits from those business bodies which can get benefited from lockdown and quarantined situation. So it is pretty safe to think of investing in hedge funds even during this pandemic.
The distressing stock market depression that continued, intense stories of struggle and hardship faced by the businesses caused by the unforeseen lockdown were explicit. Though the US’s stock market was going down by far, it tried to get hold of the situation and established various stock policies to uphold the market.