Coronavirus Fear Grips Markets

Markets go up the escalator and down the elevator!

As if a global health pandemic wasn’t scary enough, we also have to process a ferocious decline in global stock markets, many of which are now classed as ‘bear markets’ having fallen over -20% from their historic highs just four weeks ago. 

We harp on about this a lot…investing is a long-term game and the truth is without the pain there would be no gain.  So, in order to enjoy the returns offered by bull markets, we must endure the bear markets, and survival takes strong nerves and big picture thinking.  Remember your long-term goals, your financial plan and ultimately the reasons why you’re investing – which have not changed given recent events.  Try to remain calm, don’t look at your portfolio daily and do not make emotionally driven decisions with your investments – a fall only becomes a loss if you sell.

We’ve been in this situation before, many times, albeit for different reasons. Some bear markets are worse than others, but there is a common theme…the bear markets are shorter than the bull markets and if you stay calm and invested, you will be ok.

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