Did you hear we’re launching a new webinar series? Join us for your first virtual session: Are you Financially Fit? Sign up here.
In the past several days, many of our financial coaching clients have switched from in-person to virtual meetings. Some have called for an unscheduled review of their financial plan and we’ve had to put more than a few fires out over market concerns.
Headlines have been big, bold and scary ever since the coronavirus took over the world stage in February. These headlines have been amplified even more in the past week, as the stock market has seen some of the largest point drops in over a decade. And despite today’s market surge after former Vice President Joe Biden’s major comeback in voter support during Super Tuesday, significant concerns about the coronavirus persist amongst many of our clients, friends and family.
At Diamond NestEgg, and as financial coaches watching our clients’ money meticulously, we not only understand but share your concerns. We’re all wrestling with how the coronavirus is going to affect our lives in the months ahead – financially, physically and emotionally. Moreover, we are still in the dark on just how widespread the virus will become – here in the U.S. and around the world.
What we do know is that there will be economic impacts to this novel coronavirus (COVID-19) outbreak. Travel bans have been put in place and we may well see more. We may also see more schools closing, more meeting cancellations, and ongoing encouragement by many companies to work from home when possible. All of this will inevitably mean lower economic output in the near-term.
But what’s the long-term perspective?
History’s Lesson: Caution is Prudent, Panic is Not – So Just Relax & Stay The Course
Do you remember SARS though? What about MERS, the Ebola virus, Zika virus, Swine Flu and Avian Flu? All these have occurred just since 2003. And in each instance, the stock market at some point fell sharply, right around the moment we see now – a moment when we didn’t quite know how it would all work out, or how widespread it would get. Some of these outbreaks were much more deadly than COVID-19 is showing to be. And yet, in every single one of these cases, the stock market was higher six months and one year after the worst of the market’s panic (comparisons here are based on the S&P 500, the broadest index of large companies in America):
The fact is that since 1926, the stock market has generated an average annual return of over 9% per year. And over any 15-year period since then, no matter what start date and end date you picked, stocks have not only been positive, but have returned over 7%. Yep, even a time period that includes the Great Depression rewarded steady, long-term investors who stayed the course.
There’s no guarantee that the coronavirus will have the same market outcome as these previous instances. The market could easily slide more before stabilizing, or it could bounce back sharply like nothing ever happened. Only time and patience will tell – that same time and patience that has always been a friend to steady, consistent savers and investors.
Take Advantage of the Down Time: Join Our Virtual Workshops Starting March 11th!
With all the doomsday scenarios popping up everywhere, we know some of you would prefer to work remotely or just stay home and watch Netflix – which we don’t even mind, because spending time at home means you’re saving money by not going out! But we still want you to keep learning and stay on top of your money matters.
Next Wednesday, March 11 at 6:30pm ET/ 3:30pm PT and 9:30pm ET/ 6:30pm PT, we’ll be launching the first of our weekly Wealth Webinar series. We’ll be debuting with “Are You Financially Fit?”.
Future topics will include budgeting, paying off debt and basics on retirement, investing and whatever else money-related you tell us you want to learn more about!
If you want to talk to us about your specific financial situation – whether you’re overloaded with debt or feel like you’re simply not saving enough to meet your long-term goals – our team of expert financial coaches are also ready to mentor and map out a plan that best suits you. So schedule your first coaching session with us to see how we can help you get and stay financially fit – the first one’s on us! There’s immense power in just taking the first step – from there, all things are possible.