Strategies for Coronavirus Market Uncertainty
Stock market volatility can cause severe anxiety for investors. But volatility can be successfully managed with the right frame of mind and the right strategy. To start, don’t panic! Market fluctuations, even those caused by global events like the outbreak of the coronavirus, have happened many times throughout history. Experienced wealth managers understand these market reactions and can help you weather the storm.
The sudden stock market drop of February 2018 took many investors by surprise. The U.S. Dow fell Other world markets also tumbled: Japan’s Nikkei by 4.7%; Hong Kong stocks, 5.1%; and London’s FTSE 100, nearly 2%.
One day after the notorious plunge, the market surged 381 points, but by close of the same day, increase had disappeared.
The wild ride had some investors and leading economists contemplating the deeper significance of the market fluctuation. Was this a prelude to darker financial times? Was all the good news about the economy merely just a lot of monetary smoke and mirrors?
The short answer to all those questions: This appears to be a mere—although meaningful—blip on the historical radar.