When negative events begin to lineup, the market will react in a more violent way. Today we had a 2000 point sell off in the DJIA. This was the result of the combination of fear regarding Coronavirus impact on the economy and the announced oil pricing war from Saudi Arabia. Global markets are off more than 7% today and the volatility does not look like it is dissipating any time soon. When we refer to volatility, it’s not always downward pressure. Last week was a great example of the chaos of near-term investment swings. The Dow had two separate days of 1000 point declines but posted positive returns for the week.
The attached article does a nice job of outlining the impact that the oil selloff and Coronavirus are having near-term. We plan to continue to pass along information more rapidly during the turbulent trading days we have experienced. In no way does the long-term management of a portfolio strategy change. As always, we will continue to look for tactical opportunities to add.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
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The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.