Don’t panic because of Coronavirus
No need to panic on account of Coronavirus
The Coronavirus pandemic slows economic activity, causing panic in the stock markets and great volatility. Experts are lost in all equally plausible conjectures! Let's take a closer look.
- Your portfolios have been designed to withstand (to some extent) these crisis and will rebound. We have invested in the long term.
- Let’s look at the following table:
|
Epidemic |
3-month |
6-month |
1-year |
|
SRAS April 3, 2003 |
17.9% | 32.6% | 48.3% |
| Avian Influenza June 6, 2006 |
3% | 13.9% | 26.3% |
| Dengue Fever September 6, 2006 |
8.2% | 13.6% | 20% |
| H1N1 Influenza April 9, 2009 |
23.4% | 43.6% | 58.7% |
| Ebola Virus March 14, 2014 |
3.3% | 2.8% | 7.7% |
It illustrates the worst market crisis caused by epidemics and the rapid rebound of markets.
- Avian Influenza, June 6, 2006: after 1 year, 26% rebound
- SRAS, April 3, 2003: after 1 year, 48% rebound
- H1N1 Flu, April 9, 2009 : after 1 year, 59% rebound
This table shows two things:
- The resilience of markets: the Stock Market always bounces back.
- Investment opportunities are created by the crisis.
A similar table could be drawn with Stock Market indicators.
Your Plan for Retirement
“Your Plan for retirement is more at risk because of inflation then because of Coronavirus” said Fabien Major recently, a well-known economic columnist.
We could take this opportunity to check if your retirement plan really takes into account inflation and if necessary, make needed adjustments.
Need Money in the Short Term
There are other solutions than sell your Market assets. Should this be the case, give me a ring.
We are invested for the long term. Let’s not panic and take advantage of opportunities offered by the markets in times of crisis.
Are you still worried? Give us a call!