Recent days in the stock market have been somewhat rocky due to the increased cases of the coronavirus reported outside of China. This week’s losses have reversed all of this year’s gains so far, but after several months of relative market calmness, this recent volatility has felt worse than the market stability we have all seen recently. We realize the recent downturn does not feel good! We see the coronavirus as a delay and not an end to global economic acceleration.
Over the past few decades we have witnessed other outbreaks such as SARS, Zika, Swine Flu, etc. and during these outbreaks we saw that the impact to the U.S. and Global stock markets to be relatively short-lived. We think the current outbreak has the same potential to follow a very similar path. Obviously, we realize that there is still a significant uncertainty. Note, this virus has spread more rapidly than some of the previously mentioned outbreaks, but the response has been aggressive and the survival rate has been higher.
One important thing to remember, the global economy had started see a pick-up late last year and early into this year, before the outbreak. Leading indicators were pointing higher and corporate America delivered solid and better-then-expected 4th Quarter earnings and many of them saying solid things about their 2020 outlooks.
As difficult as it may seem to stay the course in face of the recent volatility, we would suggest that our long-term investors consider their approach. Our belief is solid investing fundamentals and our approach to investment management; we look for a return to our pre-outbreak levels, hopefully within the next several months. Notwithstanding, we follow a financial process that enables us to understand your personal and financial goals. As always, we work with you to review and manage these goals over the long-term.
We here at FFP Wealth Management wish you all the best and if you should have any questions, please not hesitate in reaching to us.
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