Stock Indices Spooked by Possible “Community Transmission”
Markets have been skittish following the news of a coronavirus case in California with no clear point of origin.
Many investors have been following the coronavirus updates, and those in the U.S. are paying close attention to its potential impact on Americans. Equity markets have been skittish throughout the week, and the latest news about the first case in California that does not have a clear point of origination continued the trend, explained Healthcare Policy Analyst Chris Meekins. The bond markets, on the other hand, have experienced sharp rallies as uncertainty seems to have prompted investors to seek lower risk among more traditional defensive assets, according to Chief Investment Officer Larry Adam.
While the news can be disconcerting at times, the constant headlines shouldn’t distract you from your long-term, disciplined financial plan. It’s likely the markets will remain volatile over the short term; however, Managing Director of Equity Portfolio & Technical Strategy Mike Gibbs believes attractive forward returns remain a strong possibility. Any pullback could present an opportunity to prudently and selectively add names within favored sectors.
Your advisor will continue to monitor the situation for indications of broader economic impacts and share any developments with you. It’s hoped that the global response to contain the respiratory disease proves effective and will slow the spread of the virus. In the meantime, cdc.gov lists pragmatic measures that could help protect you and your family, especially if you have travel plans.
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