The coronavirus outbreak has put a damper on a wide range of economic activities, and stock markets are reflecting the pain. Here are a few of our thoughts, in Tony’s case, gleaned from 50 years of market watching.
- These kinds of selloffs are actually a healthy thing for the markets, shaking out greedy speculators and setting a firmer foundation for the next leg up
- After terrific gains last year, markets were ripe for a pullback, the coronavirus has provided the spark
- Even after an awful week where broad markets have lost 10-15% of their value, we are back to where we were in the stock markets just last September
- This is one of the reasons why we hold bonds and cash, which are both in positive territory this week
- It is nigh on impossible to successfully time an exit and re-entry to the markets
- We are looking closely at opportunities to buy stocks that have been swept up in the decline
The comments and opinions expressed herein reflect the personal views of Tony Edwards and Joss Biggins. They may differ from the opinions of Leede Jones Gable Inc. and should not be considered representative of the research beliefs, opinions or recommendations of Leede Jones Gable Inc.