Stock Markets Enter Correction Territory
Lakeview Wealth Management2020-02-28T13:36:00-06:00Coronavirus Pullback Continues
Lakeview Wealth Management2020-02-28T12:34:57-06:00The global equity weakness continued yesterday, with consecutive 3% drops for the S&P 500 Index for the first time since August 2015. It might be hard to believe, but exactly one week ago today the S&P 500 was making a new all-time high. What a difference seven days makes!
Yes, the uncertainty that that coronavirus outbreak has caused has sparked the weakness we’ve seen over the past week, but at times like these, it is important to remember that markets go both up and down. “The S&P 500 has pulled back more than 5% from the recent peak, which has many investors on edge,” said LPL Financial Senior Market Strategist Ryan Detrick. “Importantly, most years see stocks pull back at least 5% multiple times. Even as good as last year was, stocks still pulled back 5% twice.”
Gauging Potential Economic Impact of Covid-19
Lakeview Wealth Management2020-02-27T12:15:31-06:00
The coronavirus outbreak—or Covid-19 —has caused significant market volatility over the past week. Our approach as always is to focus on economic fundamentals first, but the uncertainty around the scope of the outbreak has made it very difficult to assess potential impact. The situation clearly is unsettling for investors as more cases are reported across Europe and Asia, and the first case of community transmission has been reported in the United States. As this was written, the S&P 500 Index was 10% below its February 19 all-time high.
A Letter from Managing Director, Chief Investment Office Burt White
Lakeview Wealth Management2020-02-25T13:59:01-06:00Dear Valued Investor:
Monday was a tough day in the stock market, with the S&P 500 Index down more than 3% as the number of coronavirus cases reported outside of China jumped. Monday’s losses reversed all of this year’s gains so far for the S&P 500 Index and the Dow Jones Industrial Averages. The Nasdaq Composite Index appeared to be holding onto a small year-to-date gain through Monday’s close. After several months of relative calm in the markets, Monday’s volatility probably felt worse than it might have otherwise, but a 3% one-day decline never feels good.
Every virus outbreak is different, but looking back at other major global outbreaks over the last three decades (SARS, bird flu, swine flu, Zika, etc.), we see that the impact to the U.S. and global economies and stock market has tended to be short-lived. We think the current outbreak has the potential to follow a similar path, although we recognize there is still significant uncertainty. The coronavirus has spread more quickly than SARS, the most comparable outbreak, but the policy response also has been more aggressive, and the survival rate has been higher.
Coronavirus Fears End The Calm
Lakeview Wealth Management2020-02-25T09:25:00-06:00The Coronavirus Outbreak Is Spreading
Lakeview Wealth Management2020-02-24T12:39:06-06:00News that the coronavirus—known as COVID-19—has spread to South Korea, Italy, Japan, and Iran, has led to massive selling around the globe, with many European markets closing down more than 4%. U.S. stock markets are selling off hard as well, with the S&P 500 Index down nearly 3% in early trading on Monday.
“Although the fear over the pandemic is real, and the potential slowdown in the global economy could hurt 2020 corporate profits, let’s not forget that big down days are part of what long-term investors have had to accept,” said LPL Financial Senior Market Strategist Ryan Detrick.
Corporate America Impresses
Lakeview Wealth Management2020-02-24T11:35:06-06:00Productivity Bounces
Lakeview Wealth Management2020-02-18T11:32:00-06:00Global Gets Going
Lakeview Wealth Management2020-02-10T11:24:53-06:00"Economic growth in developed international economies continued to slow at the end of 2019 and remained tepid into 2020. Efforts to boost growth through fiscal policy and structural reforms saw little success. The
benefits of aggressive monetary policy appear to be exhausted. The exit of the United Kingdom (UK) from the European Union (EU), known as Brexit, and rising populism have not helped."