Coronavirus and the Markets
A Message from Allie and Steve
We wanted to address the market over the past few days. The spread of the Coronavirus has spooked investors, sending markets downward from record highs set last week. We don’t pretend to know what’s next; however, we have experienced virus emergencies in the past such as SARS, Ebola, and most recently Zika in 2016. We looked at the S&P 500 change during the virus emergencies and the subsequent return of the S&P 500 for those who stayed invested. See the chart below. In past emergencies, investors have been rewarded for staying the course.
There will be lingering economic effects resulting from the Coronavirus; however, diversified portfolios are built to handle just this type of unexpected situation. When we establish strategies for our clients we do not assume a forever increasing market, but rather a plan that can navigate the ups and downs that are a normal course of business for stock investors. We will continue to monitor the market movement for opportunities and please feel free to reach out with any questions or concerns.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through HD Wealth Strategies, a registered investment advisor and separate entity from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
