Timely & Relevant News: The Coronavirus Sends Markets Downward

Stock markets were sharply down on Monday and Tuesday due to breaking news that the Coronavirus had spread to South Korea, Italy, and Iran.

We want to reassure you that our investment team is closely monitoring the markets. As always, we are available to answer your questions and to determine if any adjustments should be made to your specific situation.

The drop in the markets was not necessarily a surprise to investors. Some of America's most valuable companies, such as Apple warned that their sales would be down because of widespread shutdowns in China.

What we are experiencing as of Thursday morning is referred to as a market correction - a decline of 10% or greater in the price of a security from its most recent peak. Markets experience pull backs frequently.

Many people are questioning when the markets will bounce back. Thankfully, experts are still watching the markets closely with positive predictions.

Chief global strategist at Invesco, Kristina Hooper said,"I don't think we see a recession. This is short-lived...It could very well become a buying opportunity."

Ward Keever, President and CEO of Covenant Wealth Strategies is often quoted as saying, "the market is an escalator on the way up, and an elevator on the way down." This is what we just witnessed.

During this time it is important not to lose site of your long-term goals and keep your perspective ahead of the ups and downs.

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 contactus@covenantwealthstrategies.com to set up time to discuss further.

Sources:

https://www.cnn.com/2020/02/24/investing/dow-stock-market-today/index.html

https://www.marketwatch.com/story/the-difference-between-a-correction-and-a-bear-market-and-5-other-financial-terms-to-know-for-2019-2019-01-01

https://finance.yahoo.com/blogs/breakout/investing-101--defining-pullbacks--corrections-and-bear-markets-201410281.html