Timely and Relevant News: Pandemic Doesn't Equal Panic
What financial advisors would give for a crystal ball during times like these! Unfortunately, one thing that modern technology cannot do for us is predict the future.
Pandemic Doesn't Equal Panic
On Wednesday, the World Health Organization (WHO) declared the coronavirus a pandemic. Though not to be taken lightly, the word 'pandemic' should not incite significant fear or panic to news watchers. According to the WHO, a pandemic is generally defined as, "a disease that has become widespread around the world, with an impact on society." The H1N1 flu in 2009 and HIV/AIDS have also made the list of diseases categorized as pandemics by the WHO.
"Headlines don’t often make for good investment advice." said Jeffrey Kleintop Senior Vice President and Chief Global Investment Strategist at Charles Schwab. It is critical that in times like this, decisions are based on a full understanding of the situation and not based on fear of the unknown.
How far will the market fall?
Jeffrey Kleintop encouraged investors who are trying to predict how far the market will fall by saying, "Rather than trying to call the bottom, a more effective way to think about investing right now is to focus more on the duration rather than the depth of the decline."
Wealth Advisor and Investment Committee Member at Covenant Wealth Strategies, Chris Vincent stated, "The U.S. economy is resilient and is prepared to shoulder this. The concern is, what this could mean for the global economy as a whole."
Getting Comfortable with the Unknown
We believe that "this too shall pass" and that the eventual resolution of the coronavirus will send the economy and the market on the path to recovery. It is critical to remain focused on long term goals, even if they seem farther away at times like this.
If you have specific questions or would like to discuss your own investment strategy or financial planning needs, we welcome you to call us at 302.234.5655 or email us at firstname.lastname@example.org to set up time to discuss further.