I nvestors all have different strategies of when to buy and sell. In situations where investors have a profit and markets turn for a negative trend, as is the case this year, the decision to sell or hold gets more challenging. Since the major market indices bottomed on March 23, 2020, the rally has been robust throughout 2021.
The chart below illustrates the major indices for this period, and as you can see, the SP 500 had the lowest cumulative return of only 89.08%, and the best performer was the SP 600 Small-Cap index turning in a terrific 108.9% period return.
Understandably after a strong two years, beginning January 1 of this year, all the major indices began a mild correction that appears to have bottomed on March 14. Nasdaq having the strongest rally since 2019, corrected the most this year, dropping 19.58% by March 14, and has also recovered faster than the other indices so far.