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Your investments and COVID-19: What you need to know

2020-03-10 12:00:00 PM

Hi Member,
We know that due to recent market volatility, Members are concerned about their investments – that’s why we’re reaching out to answer a couple of the big questions.
Should I make changes to my portfolio because of coronavirus?
Short answer: No. Unless your goals have changed significantly, there’s no reason to change your overall strategy.

It’s stressful to see your savings go down, we know. Markets have always had ups and downs – our experts helped design your portfolio with that in mind. No one knows exactly what will happen, but there’s no reason to think that the savings goals you set for five, ten years from now will be affected.

Have previous epidemics affected the market?
Short answer: Yes.

We have historical information showing big market impacts from political events, trade disruptions, and of course, other epidemics. The market has recovered before and there’s no reason to think that it won’t do so again. The best thing you can do is stay the course.

If you’re seeking a little reassurance, take a look at the graph below. You can see that while past epidemics have made their impact on the market, it’s not permanent.

This graph shows past changes in market returns – indicated in a table where epidemics are listed in order of least recent to most recent.
Market trends, using the MSCI World Index, are mapped from 1970 to 2020, with the dates of epidemics indicated to show market impacts.

The MSCI World Index captures large and mid cap representation across 23 Developed Markets countries. With 1,646 constituents, the index covers approximately 85% of the free float-adjusted capitalization in each country. Past performance is no guarantee of future results.

Source: Charles Schwab, Factset data as of 1/21/2020.

Talk to us
You’re not alone. Investing is personal – that’s why we give personal advice. We’re here to answer your questions and reassure you about your investments and your financial future. If you would like to review your plan, please contact us for a meeting.
Contact your advisor

Yours sincerely,

Brad Higginson signature
Brad Higginson
Director Meridian Wealth Management
Mutual funds are offered through Credential Asset Management Inc.  
Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc.
Credential Securities is a registered mark owned by Aviso Wealth Inc.