The headlines are scary and it’s easy to get caught up in the moment as widespread reaction to the coronavirus has caused market disruptions and panic selling. The urge to do something in times of crisis can be strong.
However, unless your financial or retirement goals have recently changed, our advice is to stay invested. Consider this: during the Great Financial Crisis of 2008 – 2009, once the market bottomed out, it recovered over 50% of its losses within six months and 70% within a year1.
It is best to exercise patience and fully think through the long-term implications of your actions. The uncertainties of the world can cause impulse decisions like liquidating at the worst possible time. In the end, investors who endure market declines, and stay invested, see positive growth after the markets stabilize. On the other hand, investors who get out rarely get back in on time since timing the market is incredibly difficult.
In times like these information is key. We are happy to offer the following conference call with Shashi to help put current market conditions in context. (See below)
1. Source: Morningstar.
Past performance is no guarantee of future results. International investing involves special risks, including, but not limited to, the possibility of substantial volatility due to currency fluctuation and political uncertainties. GL348c 03/20