Coronavirus hits the globe.
Covid-19, the Coronavirus that originated in Wuhan, China is now spreading throughout the world. The continued uncertainty is starting to materially infect the global economic system. The virus appears to be easily transmitted and governments are grappling with containment. Quarantines are in place. Travel to and from afflicted areas is prohibited. Throw in the 24-hour news cycle and the proliferation of social media and it’s a ripe environment for the spread of fear and panic. As China has become such a key cog in the global supply chain in most every category, work stoppages in the country are causing kinks in trade worldwide. Quarantines are putting a cap on accessibility of goods and services, while consumers are opting to hunker down at home.
Human emotions, market fluctuations, and perspective.
A few things to keep in mind in times of stock market uncertainty. Corrections and volatility are a common reaction to unexpected events. Human emotion is often the driving force behind buying and selling in the markets. While nobody wants the global economy to dwindle, it’s important to remember it’s completely natural and happens regularly. Experts on major news outlets have been forecasting a potential slow down for a couple years now. Rather than worry too much about whether the next recession is nearing, continue to focus on what you have financial control over. Sometimes taking a step back and looking at the situation long term can help in regaining perspective in times of doubt.