Over the last seven trading days, U.S. stocks have gone from all-time highs to falling to a market correction.
While this has been a remarkably quick decline, market corrections are a normal part of investing and come along about once every year or so. It would have been reasonable to expect a pullback this year, however, the suddenness of the current experience has been surprising.
So, what is driving the current condition?
Fears about the coronavirus spreading around the world and making a dent in global economic activity appear to the primary concern. There is a lot of uncertainty about what the extent and true impact will be from the coronavirus, and this caused stock markets to react negatively.
What should you do?
The answer, we believe, is to stay the course and execute the investment strategy you laid out before the downturn. It is normal to feel nervous in the face of dramatic news stories about the markets. Making important financial decisions based on fear and emotion is often counter-productive and may lead to less than optimal outcomes.
What lies ahead?
The reality is that no one knows how bad the coronavirus will be, and how far and wide it will spread. If it impacts business for a quarter or two, we think economies and markets will recover rather quickly later in the year.
If you want to have a more in-depth conversation about your investment strategy, please reach out to us at firstname.lastname@example.org or (913) 345-1881. We can set up a quick phone call or meeting to answer your questions, discuss your concerns, and review your current plan. If you don’t currently have a plan, we might be able to help you with that, too.