Spreading Impact of Coronavirus

By: Andrew T. Gardener, CFP®


We are all heartbroken by the news of the Coronavirus. Our first concern for our families and friends is your safety. While there has been very limited exposure in the U.S., we’re told the best way to protect yourself, as you would from any flu or virus, is by washing your hands and being sensible. Older people and those with weaker immune systems may want to consult their physicians and be particularly careful.

Click here to find a thoughtful article by Liz Ann Sonders, Chief Investment Strategist at Charles Schwab.

Whether or not current market activities are related to the virus, market pullbacks are normal and inevitable. Even steep declines. Historically, the market falls 2% or more a handful of days each year. Even last year when the market gained almost 30%, there were 5 days of 2% or greater drops. Every year sees market corrections. Over the last 30 years, the average intra-annual correction has been 13.7%. Even those years with positive total returns for the entire year experienced interim losses on average of 10.9%.

While we never know which days will be up and which days down, at Tanglewood Legacy Advisors, we expect corrections and help design portfolios to anticipate them.

If you have any questions about whether or not your portfolio is positioned to withstand market corrections, or any other financial matter, feel free to contact Tanglewood Legacy Advisors, The Family CFO.


Written by: Andrew T. Gardener, CFP®