We wanted to check-in with all the uncertainty floating in the air. First and foremost, we wanted you to know that we’re all for taking precautionary measures, but overall we’re not worried.
Since mid-February, we have seen a rise in global cases of the novel coronavirus (COVID-19) which has led to increased volatility in the stock market. Stock markets function as leading indicators, but at this point there is insufficient data to give guidance on how big the ripple effects will be throughout the economy. This uncertainty is one reason for the volatility or large fluctuation in stock prices. If we look at previous viruses (e.g. AIDS, SARS, H1N1, Ebola) matched with market returns in the below chart, we can see that these past epidemics have had little impact on long-term overall returns.
While “past performance is no guarantee of future results” ⬆️⬆️⬆️, we are not making any portfolio changes at this time. As you know, when we develop portfolios for our clients this type of risk is accounted for. We take into consideration your personal goals, time horizon, and risk tolerance in addition to potential changes in the market. We will continue to monitor the situation (and your portfolios!) closely. If you have any questions or concerns, please let us know. As always, we love to hear from you.
Gentle reminder: wash your hands 🤗.