The first quarter of 2020 closed as the worst first quarter in the history of the US stock market. Through March 31, the S&P 500 declined over 20%. From its peak in February to the lows in March, the S&P 500 declined more than 35% before recovering on hopes that the two trillion-dollar stimulus package will help businesses through the worst of the recession.

The corona virus has had a severe impact on the economy. The US economy added 273,000 jobs in February, reaching the lowest unemployment rate in 50 years. By March, 3.28 million Americans have filed for unemployment and the Federal Reserve estimates that job losses could total 47 million at its peak.

While the market will surely experience more volatility in the coming weeks and months, studies have shown it is difficult to time the market. Over the last 15 years from 12/31/2004 to 12/31/2019, you would have earned 9% per year being fully invested in the S&P 500. If you missed just the 10 best trading days in that 15-year span, your return would have fallen to 4.13% per year. Missing the 30 best trading days in that time period would have produced a negative return of -1.35% per year. It is important to remember that your 401(k) is a long-term investment with time horizons spanning 10 – 40 years. While it may be difficult to see the daily volatility in your account, long-term investors are often rewarded for staying the course.