The coronavirus (COVID-19) and the fear of a global virus may be new to all of us, but the increased market volatility and the fear that comes with losing money is certainly not new. Market corrections, like the one experienced last week, should be expected to happen throughout a market cycle. Looking back, investors have experienced at least one correction in 10 of the last 20 years. In 2018 for example, investors experienced two market corrections before the market then went on to set new all-time highs throughout 2019. Our portfolios and financial plans are built with these corrections in mind.
The coronavirus and its impact on people and business is very real. Lives have been lost and economic activity has been negatively impacted. However, history would suggest that the economy and markets will eventually recover, and worst case scenarios will likely be averted. We are likely in for an extended period of uncertainty and higher volatility. Coronavirus, trade, and politics will continue to make headlines and cause the markets to move with each new piece of news. We continue to maintain our long-term focus and continue to turn that short-term volatility into long-term opportunity.
If you would like to discuss your account in more detail, please contact us at your convenience.