Its undoubtedly true that COVID-19 has had a massive impact on all of our lives and made some things more difficult. At STEP we are still working, from home, but.Read more
There is no need for me to tell you again what an impact the Corona virus is having on our investments; when I say our, this is because, like you, I am invested in the market. I’m reminded of the way in which I was taught to deal with being caught in a traffic jam “it’s a temporary inconvenience for you, but it might have destroyed someone else’s life”
You can be assured that the markets will bounce back when the virus has been contained, after this type of event the bounce when it comes is usually quite steep. This is because unlike a crash which is caused by the underlying fundamentals being weak, this type of crash is caused entirely by this one factor and when that is dealt with the markets quickly find their correct levels.
The only thing we do not know is how long it will take to contain the virus, but what we do know is that the worst thing that we can do is panic and sell. If you did sell you would be forgetting that traffic jams always clear and then you will be on your way again.
Let me assure you that I am available should you want to talk; if we cannot get together, we can talk on the telephone which I will be delighted to do. If you call the office and I am not immediately available I will call you back as soon as I can, even if I’m in a traffic jam.
So to the markets
|January 2nd||March 2nd|
|FTSE 100||7604||6624||Down 12.9%|
|DOW JONES||28584||25409||Down 11.1%|
|S&P 500||3261||2954||Down 9.41%|
|HANG SENG||28543||26291||Down 7.9%|
|CAC 40||6037||5273||Down 12.65%|