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Tag: coronavirus

Q2 2020 | Quarterly Market Review

WellAcre

IN THIS EDITION OF OUR QUARTERLY MARKET REVIEW WE PROVIDE DATA AND ANALYSIS ACROSS MARKETS AND INVESTMENTS.

We also share an article that advises long-term investors on how to react to a volatile market and potential recession.  

“With activity in many industries sharply curtailed in an effort to reduce the chances of spreading the coronavirus, some economists say a recession is inevitable if one hasn’t already begun.1 From a market perspective, we have already experienced a drop in stocks, as prices have likely incorporated the growing chance of recession. Investors may be tempted to abandon equities and go to cash because of perceptions of recessions and their impact. But across the two years that follow a recession’s onset, equities have a history of positive performance.”

coronavirus, investments, Quarterly Market Review, recession, volatile markets

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Is Prudence Crazy?

man pushing a ball

Why are share prices so high and what is an investor to do?

The stock market seems to be hoping for the best rather than planning for the worst. Since we are responsible for people’s financial lives, it is prudent that whilst we continue to hope, we also plan for the worst. Prior to the pandemic, we were concerned about storm clouds gathering on the horizon so we reduced risk and continued to do so as the crisis materialized. As a result, cash positions have accrued as we look for opportunities.

Normally, terrible headlines create terrific investment opportunities. However, not this time: Amidst a tragic pandemic, with the nation’s streets awash with the red ink of a financial catastrophe, the markets are higher than at the start of 2019, and way higher than before President Trump introduced his tax cuts. Warren Buffet has a lot of cash on his balance sheet, indicating he is not finding bargains at these levels either.

coronavirus, financial resilience, stock market, stocks and bonds

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In a world where nothing is certain right now how do we know when it is time to buy?

fernando

This article was revised and updated on March 17th, 2020.

We are facing something we have never faced before in our lifetimes. That is a fact and, during a time when the news of the pandemic spreading and the recommendations on social distancing getting broader by the day, it can be hard to feel certain or safe about anything.

As troubling as it is to watch the unprecedented market decline and hard it is to tune out the fact that you know you are losing a lot on your investments, we need to maintain our health and the health and safety of our family, friends, and neighbors as the number one priority. Covid-19 which emerged late in 2019 in China has spread rapidly worldwide since then and is a global pandemic. The measures taken by leaders around the globe have been strong leaving most children without a classroom to go to, parents working from home or without a job altogether and investors panicking about what is to come.

coronavirus, covid-19, investing, stock uncertainty

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Coronavirus: What the Viral Epidemic Means for Investors

stock chart

Last week saw the worst week on Wall Street since 2008, as the Dow fell into correction likely due to the outbreak and spread of COVID-19, commonly called novel coronavirus. A market correction is a nerve-wracking event for investors, but the current uneasiness in the markets may be no cause for panic.

Market Impact

While the spread of COVID-19 is atypical, market corrections are not. In fact, they are an entirely normal process, and not altogether unexpected after experiencing the longest-running bull market on record. There have been 22 market corrections since 1974, and they are aptly named because the market usually “corrects” itself and returns prices to their longer-term trends. While the coronavirus is likely to cause economic impact into at least the second quarter of 2020, historically, Wall Street’s reaction to these types of epidemics has been short-lived. In the recent past, the 2002 Severe Acute Respiratory Syndrome (SARS) outbreak, the 2012 Middle Eastern Respiratory Syndrome (MERS) outbreak and the 2014-2016 Ebola Virus Disease (EVD) outbreak did negatively impact economic growth and disrupt the capital markets over short time horizons of one or two years. However, these past virus-triggered market corrections indicate that economies and financial markets will not be significantly impacted over the long-term.

coronavirus, covid-19, investing, stock uncertainty

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WellAcre Global Wealth Advisors is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where WellAcre Global Wealth Advisors and its representatives are properly licensed or exempt from licensure.  This website is solely for informational purposes.  Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by WellAcre Global Wealth Advisors unless a client service agreement is in place.