Chart of the week: Liberation day ranks amongst the worst selloffs on record
As Buffett puts, “the stock market is a device for transferring money from the impatient to the patient”.
This week’s Chart of the Week comes from Market Strategist for Equities Research, Lochlan Halloway.
We rarely see selloffs like the one that followed “liberation day”.
April 3rd and 4th marked the worst two-day stretch for US equities since the pandemic. It’s exceeded by only a handful of events in the past century: Covid, the GFC, the 1987 crash, and the Great Depression.
When even gold doesn’t look safe enough—it too was falling at the peak of the meltdown—you know the market is in full-blown panic.
What does this mean for investors?
We don’t know how it all plays out—nobody does—but we’ve faced big shocks in the past. And while there’s been pain along the way, in the long-run, markets have recovered.
Halloway asserts that the big selloff means many stocks we cover are undervalued. In fact, more than half our list is 4- or 5-star rated, well above average.
