(FinancialHealth.net) – By now, the entire world is used to waking up to some new horrific news brought on by COVID-19. Today was no different. The stock market made history again on March 12 by shutting down for the second time in less than a week… and the ninth time in its existence.
Axios reports that one senior analyst at FXStreet, Joseph Trevisani, declared “The market is having a crisis of confidence.”
He may be right, but a lot of that loss of confidence is founded on comparisons. As investors took measure of the world around them, American trade wasn’t looking so great. While the Bank of England and U.K. Treasury offered tax breaks, benefits and sick pay, some Americans were offered a fraction of that in loans.
Fed to inject over $1.5 trillion into short-term funding markets to prevent trading conditions from sparking deeper economic problems. Stocks pare losses. https://t.co/YayRwCvnci
— The Wall Street Journal (@WSJ) March 12, 2020
It’s a matter of collective failure. While the politicians were hashing out how they could all serve their own interests, retain their wealth, and not let COVID-19 destroy the American economy, the rest of the world got the ball rolling. Finally, America followed suit as the Federal Reserve threw a $1.5 trillion hail Mary in the form of bond markets to hit by the weekend.
By this afternoon, the market was already on its way back up as a result. This week in finances has definitely earned its place in the financial history books!
~Here’s to Your Financial Health!
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