Hartford Financial stock (NYSE: HIG) lost more than 50% – dropping from $61 at the end of 2019 to around $31 in late March – then spiked 32% to around $40 now. But that means it’s still 34% lower than where it started the year!
This can be attributed to 2 factors. The Covid-19 outbreak and economic slowdown meant that market expectations for 2020 and the near-term consumer demand plunged. This could lead to lower investment yields and a drop in investment premiums due to a shift in customer focus from long term to near term survival, weighing on Hartford Financial’s top line. However, the multi-billion-dollar Fed stimulus in late March helped arrest the negative market