Coronavirus - Investing Beyond The Headlines

As the Coronavirus continues to infect markets globally, investors around the world will naturally become more anxious with every headline they read. And this is not an issue that should be taken lightly, by any means.

Commenting on the concerns raised by the virus, GWM's Chief Investment Officer Iain Ramsay said:

"From an economic and subsequently an investment perspective the major concern surrounds the impact the virus has on economic growth. We have already seen the effects the virus has had on manufacturing in the USA, exports from Europe and of course more specifically the damaging effects on the tourism sector, as many countries lock down regions and limit travel to and from their shores"

In line with many economists we anticipate the impacts of the virus will result in lower GDP growth around the world for the first half of 2020, albeit there is still reasons to be optimistic that if the virus can be contained economic growth could resume during the second half of the year."

Investing with confidence while markets are volatile can be difficult. However, history shows that major stock markets have always reacted, and recovered from every downturn.

As you can see from the chart above, in recent times Markets have tumbled on the back of events such as the dot-com bubble in 2000, and the Global Credit Crisis of 2007 before rallying and going on to reach new highs.

Discussing how to guard against market volatility Ramsay added;

"During these uncertain times it's vital investors take a long-term view rather becoming hung up on the hourly fluctuations that are occurring.  And by holding a diverse portfolio with a broad mix of investments across asset classes, sectors and regions ensures you aren't over exposed to any one investment market.

Should you have any concerns regarding your own investments and how these key points relate to your portfolio specifically, I would encourage you to speak directly to a GWM financial adviser. "

© 2019 GWM