Broker Check

Weekend Reading 2/28/20...Don't Panic!

| February 28, 2020
Share |

In a wild week for stocks, the S&P 500 Index ended down 11.5% for the week.  Fears of a global stall caused by the spreading Coronavirus drove stocks down the entire week.

 

The 10-year Treasury yield set a record low and ended the week at 1.156% as investors flocked to safety. 

 

Disease outbreaks are nothing new, but can still cause some pain in the stock market.  Below shows the initial drawdown for the S&P 500 Index during various outbreaks.

Sometimes the rebound back is quick and sometimes it takes a while to return to pre-outbreak levels.  See the table below for how previous outbreaks affected global markets:

 


 

 Immune: world epidemics and global stock market performance

 

Note: MSCI World Index scale is reflected in the left vertical axis.

Source: Charles Schwab, Factset data as of 1/21/2020. Past performance is no guarantee of future results.

 

 Our advice over the past year has been to be at or near your risk targets.  The important part during this decline is to not panic.  Selling, while tempting, locks in losses and can cause investors to miss the gains on the way back up.  Instead, we recommend to take a look at target allocations and remember why you set them.  If you have questions or would like to discuss your portfolio or the market in general, please email us or give us a call.  - JR

 

  

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by HWA Financial Group (“HWA”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from HWA.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  HWA is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of the HWA’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a HWA client, please remember to contact HWA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  HWA shall continue to rely on the accuracy of information that you have provided.

Share |