Coronavirus and Your Investments...

The coronavirus is scary and is certainly on everyone’s minds. As the number of infected people continues to grow, so might some of our anxiety about the spread and potential impact of the virus. While we don’t know how many people the virus will infect and the length of this viral cycle, we do know that you may have some questions about how this might impact your investments.

It’s important to keep perspective. We know that this is not the first new virus we’ve seen, and it won’t be the last. SARS, Zika, H1N1 and others have all come and gone. While the concerns at the time were the same (e.g., How quickly will it spread? Will there be a cure? Will it slow down the global economy? Will it impact my investments?). Modern medicine has figured out how to overcome past viruses, and markets have done the same.

In fact, markets have short memories regarding epidemics. Markets may initially react to the uncertainty and fear that comes with any new concern, but, for the most part, viruses get contained and investors return to corporate and economic fundamentals. We can see this pattern in the above table. Market returns generally have been up in the six- and 12-month periods following the outbreak of a virus or disease. While this is a small sample set, we know that keeping focused on the long-term helps us keep a level head during all kinds of storms.

You’ve heard me say this before… Stick to your long-term plan and tune out the noise. We invest for clients using tailored investment strategies, and prepare financial plans that factor in events like these, which will come and go. So, please, stay positive and focus on family and your health. If you want to think about the virus, send positive thoughts toward those infected by the virus.

Given this correction, there are an abundant number of excellent buying opportunities. Many blue chip companies have pulled back to very attractive levels not seen for a while. From my experience as an advisor, I can say with conviction that it’s times like these that the real money can be made in your portfolio- by buying excellent companies at a discount. And, based on market history, these opportunities don’t last long.  

I’m recommending 7 quality companies and mutual funds that investors consider right now that may compliment their investment plan.  Contact me at [email protected] and I’d be happy to discuss in detail.

Meanwhile, if you would like a "second set of eyes" to review your portfolios (no obligation) or want to discuss your financial planning needs, please reach out. We are here to help you reach your financial life goals!