March 2, 2020
Markets plunged last week amid concerns that the Covid-19 virus, first identified in China, could spread into a global pandemic.
Stocks shed one-tenth of their value in less than a week, gutting client portfolios. By Friday, markets had seen their biggest one-week drop since since 2008. Advisors told FA-IQ that they hit the phones to quell client worries and remind investors not to stray from their long-term plans. Do you expect markets to sink even more on Coronavirus fears?
|Yes. The disease poses dire consequences for the global supply chain. Until the scope of its impact is known, expect markets to keep tumbling.|
|No. Last week’s correction reflects a jolt in sentiment, but fundamentals remain solid. I expect markets to stabilize, if not recover.|
Stay the course
Mar. 2, 2020 at 08:45 AM EST
This is being driven by emotional investor fear. The US is the strongest economy in the world and we need to not listen to the media instill fear but remain calm and know we have a Fed that will step in, if needed, to allow a mid-cycle expansion to continue.