Coronavirus and Market Volatility

Coronavirus and Market Volatility

Market declines are an inevitable part of investing — what matters is how we respond. Nevertheless, periods similar to this past week may cause investors to have concerns.

Since the Chinese government announced the outbreak of a novel coronavirus in December, our perspective has been that the virus’s containment and duration would be key to its impact on the markets. Recent volatility reflects the realization that the virus isn’t as contained as was previously thought, which could affect economic factors from earnings to interest rates. We continue to believe that if countries with meaningful outbreaks can control them, the long-term market impact of the coronavirus will be relatively benign—like that of previous epidemics. We are continuing to monitor developments and will keep our clients updated.

Market declines such as the one we have been experiencing should not alter your overall investment strategy. However, if you would like to review your portfolio or talk with our team, please do not hesitate to contact us at timonier@timonier.com or (336) 725-5010.

For a more in-depth understanding surrounding the impact of the 2020 coronavirus we would like to share a publication from the team at First Trust highlighting relevant information and viewpoints that are in line with the viewpoints of the advisors at Timonier. To access that white paper please click HERE.