2020-02-24 00:00:00, Lauren WybarJessica McBrideMatthew BarrovecchioJackie YoussefRich PowersAndy ClarkeJoe Davis, Vanguard Blog
Content Categorization
/Finance/Investing
Word Count:
443
Words/Sentence:
34
Reading Time:
2.95 min
Reading Quality:
Adept
Readability:
13th to 15th
The coronavirus has introduced uncertainty into the global economy to a degree greater than we had envisioned when we put together our economic and market outlook for 2020.
Investors frequently respond cautiously to heightened uncertainty, selling out of riskier assets in favor of safe havens.
Markets have shown over their history that volatility is more the rule than the exception, and that events that prompt sell-offs tend to recede into the background over the longer term.
In fact, it was the theme of our economic and market outlook for 2020, where we put forth our view that perhaps the markets have become too optimistic about the prospects for growth in China, the United States, and elsewhere.
And now comes COVID-19, also known as the coronavirus.
With this knowledge, we encourage investors, as we have for ages, to hold a diversified portfolio of assets, to remain disciplined by avoiding impulsive decisions based on fear and uncertainty, and to stay focused on their long-term goals and their plan for achieving them.
Predicting the course of a disease as novel as the coronavirus is sure to challenge even the most accomplished medical scientists.
That said, this is what we do know, from an economic and markets standpoint:
News over the weekend suggested a noteworthy spread of the disease beyond China, where it originated, to South Korea, Italy, Iran, and other countries.
We're saddened by the loss and suffering that so many people have already endured.
Keywords
economy, wang, qian, covid-19, global, pandemic, epidemic, slowdown, coronavirus, virus, economic, china, effects, davis, outbreak., greg, vanguard, schickling, adam
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