The impacts of the Coronavirus The Coronavirus slows down the economic activity, which creates a movement of panic on the stock markets and its great volatility. The experts are lost in conjectures, each one as plausible as the other! Let's take a closer look.
Your portfolios have been designed to withstand these crises and will rebound. We are invested for the long term
Let's take a look at the following chart:
It illustrates the worst stock market crises of recent years and the opportunities represented by a balanced strategy.
October 1987 crisis, Black Monday: after 5 years, 64% rebound
Internet bubble of March 2000: after 5 years, rebound of 12%.
Bankruptcy of Lehman Brothers in 2008: after 5 years, rebound of 51%.
This graph illustrates two things: The resilience of markets: the stock market always rebounds
The investment opportunities created by crises The same kind of graph could be made with stock market indices. In the appendix, I have added a chart on stock market returns following epidemics.
Your retirement plan " Your retirement plan is more at risk because of inflation than because of the Coronavirus " said recently Fabien Major, a well known economic columnist. We are invested for the long term. Let's trust the managers who will take advantage of the opportunities presented by the markets in times of crisis.
Are you still worried? Let me know!