This week, stock markets around the world were rattled by the coronavirus. The disease has now spread far beyond China, with cases reported in six of seven continents. This has dashed hopes that the virus would be isolated to China and investors are reacting to the potential risk to global economic growth.
Although we've seen a significant market decline, recent history suggests that the stock market has previously overreacted to viruses (SARS, Zika) in the short-term, and then quickly recovered to reach new highs. While you'll likely see lower account balances on your February statement, it is no reason to panic. Economic fundamentals have not changed, so we remain optimistic for the remainder of the year. This latest dip in the markets is needed and it's a good reminder that the stock market doesn't just go up!
Read more here... Epidemics & the Economy
Andrei Jigalin, CFP®