The Coronavirus (COVID-19) Impact on the Markets

The stock market was hit hard by the impact of the coronavirus in late February.  Here are our thoughts on the recent market volatility

• Dave's Thoughts
  • First, you need to build a diversified portfolio that is designed to meet your specific goals and is based on sound investment principles.
  • Once you've built the right portfolio, it is important to "Keep Calm and Carry On" during periods of market volatility.
• Andy's Thoughts
  • Volatility is a normal part of investing, and we can find many times in the past where there were comparable levels of market volatility.
  • Overall, markets tend to grow over the long-term, so maintaining discipline during these times is important.
  • After periods of weakness in the S&P 500, as defined by declines of 10% or more, markets have historically performed well.
  • Staying disciplined in the short-term as an investor is important in order to attain long-term success.
• Michelle's Thoughts
  • Humans are wired to be bad investors and want to do the wrong things at the wrong times.
  • The term "Follow Your Heart" shouldn't apply to investing, and investing should be built on diversified portfolios based on academic research, and coupled with discipline during periods of market volatility.
  • Portfolios should be customized to the investor in order to pursue the return they need without taking on more risk and volatility than that person is comfortable with.  

Historically, there have been many reasons and excuses for investors to feel nervous about the stock market, but history has favored the investors who build globally-diversified portfolios that are specific to the individuals who own them and their needs.