January was setting up to be a nice month for stocks, then we got news of the coronavirus and there went those January returns. Let’s review the lessons of January, next.
January serves as a good reminder that when investing you must be prepared for the unknown unknowns. When the unforeseen news does pop up, it tends to move markets and increase volatility. These are the times that diversification really does shine compared to a concentrated portfolio, as your allocation of bonds really do a nice job of buffering some of that stock market sell-off.
For the week ahead, the coronavirus will no doubt be a focus. To this, we say this too shall pass and to remain long-term focused and to not be emotionally driven to hit the sell button. Remember that stock market selloffs and corrections happen, that it stinks going through them, but we have to be ready for them and to remain mentally strong.
For a more detailed market report head on over to our Insights page. Where there are some of the key economic data points to be released this week. Also subscribe to our YouTube channel and check out some of our other social media pages.
This has been your weekly market minute, and we’ll see you on Monday – prefer to listen or watch? Check out our video & audio formats below:
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