Coronavirus isn’t just going to have drastic impact on the health of US Citizens, it’ll affect the health of the US Economy too
With recent developments regarding the spread of the Coronavirus being imminent within the United States, we are entering an unprecedented and unknown period in the stock market. It’s no strange coincidence the market has been super volatile in the last few days because of how worried everyone is, as well as the tone of the current administration on the situation that we are facing. As of this moment there have been 29 million people quarantined in China in various large cities and more than twice that number have been instructed that they shouldn’t leave their homes. The virus has made its way into different parts of the United States and given a lack of infrastructure and testing kits to deal with this, there is little we can do other than being precautious ourselves.
Just as we should take steps to improve upon our own health and do what we can to prevent ourselves from getting the illness, we also must take steps in the marketplace. The Coronavirus is going to affect much more than the health of individuals, it is going to have a drastic impact on the direction of the market and economy, and you better be equipped to handle it. There’s already a massive amount of social instability in China, and regardless of how devastating the virus proves to be within the United States, we live in a global economy that is likely to see negative repercussions as a result of the seemingly incipient collapse of China in the near future.
Now more than ever is a time that is extremely important to be cautious and smart when making new investments or managing current ones, and is why the services of Matheny Advisors could be quite useful to you. This isn’t just a run of the mill overreaction to bad news that results in people trying to firesell stocks while prices are dropping, there is a very real possibility of even more stock market casualties.
Past situations that have been similar to this one include the spreading of Swine Flu, Zika and Ebola, all of which saw extended periods of a dropping stock market (up to several months). And based on the rhetoric regarding the spread of the Coronavirus by the CDC and the US Government, this virus has the potential to be much worse and far-reaching than the aforementioned diseases, meaning this could have an even more drastic impact on the stock market.
Given the insane run of economic growth over the last 11 years, it is imperative to be careful with the cyclical nature of the stock market coupled with the fears of the American public concerning the Coronavirus. Utilize the help of Matheny Advisors. In times of uncertainty you don’t want to leave things up to chance or up to guessing, a professional advisor/strategist can help you balance your portfolio and develop a strategy that will give you long-term earnings. Take care of both yourself and your money in this time of need.