As the global news and local news about the spread of coronavirus grows we need to remain calm and ignore a lot of the background noise. The best option in the circumstances is to remain fully invested and not change anything when volatility is high.
Please see the chart below that outlines the impact of various health scares on the S & P 500:
As you can see from the above chart when you look back historically the impact on markets has been minimal as the recovery can be quite sharp in the majority of cases. If you zoom in (and listen to market analysis) most recoveries are V shaped.
So to precis, remain invested, ignore the noise and keep calm and carry on. For those of you with liquid cash this could be a great time to invest!
As ever, if you are unsure please call me.
Steve Speed
06/03/2020
Chart cut & pasted from one of the investment houses we use, SEI, from their email dated 05/03/2020.