Coronavirus: A Perspective on How it Affects “Your Personal Economy”

A 30-second read by Victor Cannillo:  First and foremost, our thoughts go out to the individuals and families who have been affected by the coronavirus.  Our main concern is the health and well-being of our global community.

During times of financial uncertainty, it’s often helpful to take a step back and identify what we know and what we don’t know, as well as what we can control and what we can’t control. These types of thinking exercises can help us make good decisions.

Let us not forget that we have experienced many health scares over the past two decades, each one very scary at the time. Do you remember SARS, Avian Flu, Swine Flu and Ebola? All of them elicited similar panics in the media, which can increase volatility in the markets. 

During times like these, the important question is: Is your portfolio properly diversified? 

Keep emotions intact and avoid behavioral mistakes.  Unfortunately, markets do not go straight up.  Many people are too overconfident when markets are positive and too pessimistic when markets are experiencing negative performance. Don’t lose your patience.  Have a plan in place so that when downside volatility occurs you know what actions to take.  A risk-appropriate strategy should keep you invested during volatile times and rebalance when needed

Please reach out to us if you would like an objective second opinion of your portfolio and financial plan.

Disclosure: Past performance is no guarantee of future results.  Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, tax or investment advice.  Please consult your investment professional or tax planning professional for personal advice.  

Source:  Baron Financial Group, LLC

Source:  ©2020 The Behavioral Finance Network. Used with permission. ( No Affiliation with Baron Financial Group.)