Circuit Breakers Explained - How they can protect your assets Skip to content About Services E3: Community Insights + Resources Contact Account Access Insights + Resources Circuit Breakers Explained Mar 16, 2020 Over the past few weeks, investors may have been introduced to a new term they weren’t previously familiar with: circuit breakers. Today, we answer a few simple questions about circuit breakers: What is a circuit break? A circuit breaker is a built-in temporary halt or momentary pause in trading in the stock market. What are the triggers for a circuit breaker? There are three levels, or thresholds, at which trading will pause, and they are based on movement in the S&P 500 Index. Level 1 occurs when the S&P 500 declines at least 7% from its closing price the day before. Level 2 occurs if the index drops 13% from its close the prior day. After each Level 1 and Level 2 threshold is reached, trading pauses for 15 minutes. If the index ever drops 20% from its prior day’s close, the Level 3 breaker is enacted, at which point trading is discontinued for the rest of the day. Circuit breakers do not apply to strong upward moves in prices. What is the point of circuit breakers? The original intent of circuit breakers was to stop a market in free fall or prevent panic selling. By halting trading for a set amount of time, investors ideally can reassess market conditions. But the time also allows investors to understand what’s happening in the market, for example in the event of an impactful midday news break. Three Level 1 breakers have been triggered over the past two weeks: March 9, March 12, and most recently on Monday, March 16. It’s also important to note that some traders have questioned the efficacy of these breakers since then, given that they occurred early in trading and lower prices were not likely to have been a surprise to investors those mornings as stocks gapped signifcantly lower. Nevertheless, circuit breakers remain an intentional aspect of the stock market, and ideally give time for buyers and sellers to be matched up more efficiently. If you have any questions don’t hesitate to reach out to your trusted financial advisor at Epic Capital Wealth Management. Tags: charlotte NC, Current Events, Financial Planning More Insights Market Update: Fed Gets Pessimistic, Yet Realistic Sep 23, 2022 The Federal Open Market Committee (FOMC) increased the target rate by 75 basis points (bp) to a 3.25% upper bound and delivered a more pessimistic outlook in their published Summary of Economic Projections. Healthcare Costs are Cutting into Retirement Preparations Sep 21, 2022 You may have seen this statistic before or one resembling it: the average 65-year-old retiring couple can now expect to pay more than $250,000 in healthcare costs during the rest of their lives. In fact, Fidelity Investments now projects this cost at $285,000. 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Over time, the performance of different investments can shift a portfolio’s intent as well as … Continue reading “Rebalancing Your Portfolio” Insights + Resources > Top of Page 10 Smart Money Moves for 2022 Get it Now A Retirement Fact Sheet Get it Now 12 Estate Planning Must-Do's Get it Now Try Our Interactive Wealth Analyzer Open Analyzer 7 Steps for Investing with Impact Get it now Start Investing with Guided Wealth Portfolios Start here Receive our weekly market commentary in your inbox: Sign Up > Newsletter Archive > Services Epic Capital provides the following comprehensive financial planning and investment management services: Learn More > Financial Planning Investment Management Retirement Planning Estate Planning Tax Planning Income Planning Philanthropic Planning Risk Management Impact Investing Education Planning Find us on: 6135 Park S Dr #527, Charlotte, NC 28210 Email info@epiccapital.com Call (704) 552-5200 Fax (704) 552-5201 Copyright © 2022 Epic Capital Wealth Management. 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