Addressing coronavirus news and market volatility
Paul Christopher, head of Global Market Strategy for the Wells Fargo Investment Institute, notes current low risk for recession, and identifies sectors to watch.
Amidst the developing news on coronavirus, Paul Christopher, head of Global Market Strategy for the Wells Fargo Investment Institute, or WFII, shared insights on the current market volatility and the resulting global economic impacts.
The markets are reacting with fear, due to the unknown extent of the risks, Christopher said.
“Volatility means that market participants sell holdings when the future feels dangerous,” he said. “No one knows yet how far or fast coronavirus may spread, and what its ultimate economic impact may be.”
It is important not to lose perspective, Christopher noted, pointing to the historic data, where equity prices suffered sharp declines from prior all-time highs in 2011 (roughly 19%), in late 2015 and early 2016 (14%), and again in 2018 (nearly 20%).
The Institute is posting updates with additional insights and information on how investors may want to respond to coronavirus on the Coronavirus Impact resource page.
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