The video update for this month focuses on the Coronavirus outbreak. With lives at stake, it would be uncaring to call this “noise” or to underestimate the economic impact, but there are a couple of things to put into perspective. Firstly, markets have fallen from all-time highs and were widely seen as being overvalued. Secondly, the likely severity of the virus must be considered and how we will become accustomed to living with it, as will the global economy.
I refer to the chart below that shows how markets have reacted after previous virus outbreaks. One thing is for sure, the long-term charts for equity investors show a prosperous picture, but there are always hiccups along the way that ultimately fade into the big picture.
Source: Morningstar Investment Management
If you would like further insights or would just like to chat about your experience in navigating markets and the tax system to achieve your long-term goals, I’d love to hear from you!
The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions