WEALTHTRACK Coronavirus & The Markets (February 2020)
Fears of a coronavirus induced hit to the global economy and corporate earnings drove stock markets into official correction territory today. It takes a 10% decline from the previous high to meet that definition and the Dow, S&P 500 and NASDAQ all exceeded that standard today after relentless selling this week.
For institutional investors, who are frequently judged on quarterly performance the safest course of action from a short-term performance standpoint is to sell first and ask questions later. Individuals are under no such pressure. As frequent WEALTHTRACK guests and The Wall Street Journal’s “The Intelligent Investor” columnist Jason Zweig wrote this week, “The Pros Have to Sell Stocks Now. You Don’t.” The article gives very compelling reasons why.
How damaging will the coronavirus prove to be to business? In a WEALTHTRACK podcast, Nicholas Bohnsack, co-founder, and partner of top-rated macro research firm Strategas Research Partners assesses the evidence so far and why he and his team believe there are reasons for optimism longer term.
WEALTHTRACK #1635 published on February 28, 2020
The Pros Have to Sell Stocks Now. You Don’t.: https://www.wsj.com/articles/the-pros-have-to-sell-stocks-now-you-dont-11582722004?