How Individual Investors Should React to Coronavirus News
by AAII Staff | February 26, 2020
With the markets reacting to ongoing news about the COVID-19 (coronavirus) outbreak, what should the individual investor do with their assets?
AAII Journal editor Charles Rotblut talks through weathering these kinds of global events and the importance of staying focused on your long-term investment goals.
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Discussion
geewhiz from california posted over 6 years ago:
When reading and hearing "keep your long-term horizon and plan in mind" it behooves investors to keep in mind that a broad market can take a decade or more to reach the level it once had. Keeping the long term plan in mind doesn't mean complacence. In one week the S&P dropped roughly 12% and now has to recover 13% percent to get back to even. The worse the decline the more relative gain is required just to get back the lost ground. Most AAII members probably already realize this. That said, retail investors who are newe) than 10 years into this process should spend some time understanding the historical record of how badly markets can behave when they tantrum, understand what a recovery takes, and plan accordingly. Keep safe out there.
DickM from MD posted over 6 years ago:
Charles omits mention of the likely impact of the virus on the supply side, which I believe will be the one thing that makes this situation more dangerous from an economic viewpoint and take longer to recover from than previous market shocks. Also, as an 84-year-old retiree, I don't have years to wait for a recovery, and not a lot of cash to draw on. I'm very concerned.
Don McAuley from Indiana posted over 6 years ago:
Nicely done video Charles! In my opinion, good advice for all. Don McA...Greenfield, Indiana
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