You may have heard recent media reports about some fluctuations in the stock markets and we thought you might find it helpful if we provided a bit of context behind them.
The world stock markets have panicked by the spread of Coronavirus recently as sharp falls have followed news that the virus has hit Europe and governments attempt to trace its path.
In relation to the disease itself, the now named Covid-19 virus, does not appear to be as lethal as more recent outbreaks such as SARS. We should put this into context – according to health experts’ standard influenza is likely to kill far more people around the globe than this virus over the coming twelve months. Covid-19 vaccines are currently undergoing testing in various parts of the world with human testing as early as April.
The virus has had a significant impact on market sentiment, with markets reflecting the uncertainty of the current situation. Uncertainty has a major influence on the markets.
CHN think long term when investing and, suffice to say, at this time we do not intend to change our long-term view.
We continue to believe in the policy of diversifying client portfolios, holding a variety of assets to deliver returns over the longer term and riding through events such as this.
The benefits of this diversification have recently been seen, with unexpected world events such as the Hong Kong China issue and unexpected reductions in interest rates by central banks.
Previous viruses have had short term impact on the world markets:
Should you have any concerns regarding any of the above, please do not hesitate to contact your Financial Consultant, who will be only too willing to assist you.