On February 1st we wrote about market and economy expectations for 2020. In it we shared insights gleaned from the Year Ahead Investment Conference held on January 20th. Since then there has been much talk about the Coronavirus and how it will impact the markets and economy.

We are nerds, so when we have questions, we go to the numbers. Our friends at Fidelity Investments Canada recently shared the below chart with us. It shows that while epidemics have an impact on the market, it tends to be short lived and the prevailing trend at that time tends to continue.

Since industry experts are expecting moderate growth for 2020, it would be logical to assume that this is still true. We may have to put our patience caps on while we work through the uncertainty that an epidemic brings.

So, perhaps the best course of action right now is to turn down the radio, close the twitter app, turn off the business news channel and take a collective deep breath.

Remember that your team here at Watermark Stone Wealth doesn’t pick investments based on news feeds. We don’t try to predict the future. Instead, as we have said time and time again, we are all about facts and letting our numbers do the talking. We will be continuing to watch markets around the world, looking for positive trends so that we can maintain the defensive portfolios we have structured for you.

If you would like to hear more about the Coronavirus’ impact on markets and the economy and how we protect and grow your money, give us a ring and we’ll set up an appointment.