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Is It Time to Fear the Coronavirus?

Is It Time to Fear the Coronavirus?

February 27, 2020

To say we are in an exceptionally volatile period is an understatement! The Coronavirus is a very real threat to our health and also to our wealth. The Dow Jones Industrial Average reached an all-time high of 29,551 on Feb. 12th, but has declined on 7 of the last 8 trading days. Even as I pen this on Thursday morning Feb. 27, the Dow is presently at 26,293, which represents a decline from the peak of 11% and puts us at this moment into an intraday “correction,” which is a 10%+ decline.  

While no one LIKES volatility when it is red and the arrow points down, you have indeed learned to LIVE with it and believe that your long-term allocations and accompanying portfolio diversification can and does pay off over time, just not every time. Frankly, when the arrow does turn green and points up, it often does so swiftly and sharply and when we least expect it. Remember this too, that most of you are not allocated 100% into stocks.

I was thankful to receive as of the close of the business Monday Feb. 24th, the below post from professionals that I follow and trust; Chief Economist of First Trust Portfolios' Brian Wesbury and his colleague, Deputy Chief Economist Robert Stein, CFA. I implore you to spend the next few minutes to take in their perspective, which Henry Wealth Management certainly endorses, to see that despite this human calamity, we remain confident that our economy is strong and resilient and that present decline represents a great buying opportunity for those who may be sitting on excessive cash reserves.

Please read and reply to us with any questions or comments and thank you for your business and trust.