The Corona Outbreak Causing Your Investments to Ache?
A “Red Alert” has been issued by the United States, and the World Health Organization has declared a global health emergency. There have now been almost 9,800 confirmed worldwide cases and 213 deaths stemming from the deadly Coronavirus (as of 9:30PM EST yesterday evening):
The epicenter of the virus is in Wuhan. With a population of more than 11 million people, Wuhan is the most populous city in central China and larger than New York City. And while this extremely dangerous and deadly epidemic has so far gone virtually unchecked, there is hope for containment, as a vaccine is expected to be in a Phase 1 trail within three months, and China is racing to stay ahead of the outbreak by quickly mobilizing and building two 1,000+ bed hospitals in only ten days!
A number of Towerpoint Wealth clients have asked what this means for the Chinese, U.S., and global economies, the U.S. and global stock markets, and most importantly, their portfolio. And our resounding answer has been “not much.“
It is fair to assume there will be shorter term stock market gyrations as news reports discuss the progress, or lack thereof, in producing a vaccine and of containment efforts. However, we also speculate that the U.S. Federal Reserve (“the Fed”) will be monitoring for coronavirus impacts both domestically and globally, and continues to stand ready to be very accommodative with monetary policy. While there will likely be near-term impacts on output, especially in China, other signs from global economies have the Fed cautiously optimistic that growth is returning higher.
Or if you prefer history as a guide, the statistics speak loudly and clearly:
Our advice at Towerpoint:
- Wash your hands and don’t travel to China
- Pay attention to the news but don’t be reactionary to it
- Regardless of your personal or financial circumstances, be disciplined in regularly rebalancing your portfolio in the face of negative newspaper headlines
- Look in the mirror and ask yourself if you are a short-term trader or a longer-term investor, and then act accordingly
- Review the World Events graph below and recognize that the market is usually very resilient both during and after major crises
TPW Says Goodbye to Jim Denny’s
No more giant “hubcap” pancakes. No more Superburger.
Towerpoint Wealth team members were saddened to hear that Jim Denny’s, a true local restaurant icon here in Sacramento, is set to close on February 2 after 85 years (!) in business.
The team was happy for the opportunity to patronize this iconic diner and landmark one last time for breakfast earlier this month!
Update: Click HERE to read why Jim Denny’s may not be closing!
Kobe Bryant RIP
Whether you loved him or hated him (and there are good reasons for both), Kobe Bryant’s January 26 death shocked the country. He was an NBA superstar, icon, and future Hall of Famer, but more importantly, he was a father and a husband, and it is the loss to his family which hurts those of us at Towerpoint Wealth the most.
We highly encourage you to click HERE and spend 60 seconds to watch Kobe’s emotional and inspiring message to his daughters during his jersey retirement night in Los Angeles.
What You Should Focus On
Credit to Carl Edwards at the Behavior | Gap.
Lastly and as always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth, and encourage you to reach out to us (info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an extremely complicated place. We are here for you, and look forward to connecting with, helping, and being a direct, fully independent, and objective expert financial resource for you
– Joseph, Jonathan, Lori, Nathan, Steve, Raquel, and James
