Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

3rd Quarter | 2020

Market insights and analysis


Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Gold sold off dramatically late last week, breaking through the 50-day moving average on Thursday (3/12) and testing support at the 200-day moving average on Friday (3/13). Gold prices closed the week at $1,516.70 per ounce (see the following chart).

While the stock market has tumbled since making a new high on February 20, giving back all of its 2020 gains, I want to provide you with some good news. Accounts here at Flexible Plan Investments, Ltd. (FPI), are weathering the storm very well.


I was listening to one of my favorite radio broadcasts last Friday morning (March 6), about 45 minutes before the market open. Tom Keene, of Bloomberg Surveillance, was reviewing various pre-market levels. Dow futures were down at the time around 700 to 800 points, and other indexes were similarly heading south in a big way. He made the curious comment, “It just does not feel like a 49-level VIX for equities at the moment”—even though that is where the VIX stood. (The VIX, also known as the “fear index,” is a measure of stock market volatility. On Friday, it went on to make a 52-week high over 50 before closing at 41.9.)

graph gn 030920.png

Gold prices rebounded last week after an end-of-the-month sell-off the previous Friday (2/28). The sell-off may have been related to margin calls for investors dealing with the previous week’s precipitous decline in the equity markets.


In one week, major indexes fell into “correction” territory, logging a drop greater than 10% from their recent peaks. Last week, the S&P 500 fell 11.49%, the Dow Jones Industrial Average fell 12.36%, and the NASDAQ 100 was down 10.54%. The main factor in the worldwide selling in the equity markets, according to most financial news stories, was the coronavirus. COVID-19 fears resulted in the fastest market correction in history.