Volatility was below average in 2019 but the concerns of the economic impact of coronavirus may bring us more volatility in 2020. 

Coronavirus was first identified late last year in Wuhan City, China. China is the second largest economy in the world behind the United States and a slowdown in economic activity could have widespread economic disruption. The coronavirus comes during the Lunar New Years holiday,  when Asia tends to see peak economic activity. Before making irrational moves in your portfolio it’s important for investors to put this outbreak into perspective.

S&P & Global Viral Outbreaks

The chart illustrates that in post global viral outbreaks we haven’t seen a significant drop from concerns about the epidemics. The drawdowns have been short lived as the outbreak fears dissipate. Pandemics like coronavirus tend to grab the attention of market headlines but often these outbreaks have minimal long term impacts on the market.

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The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.