With the threat of the coronavirus disease outbreak still looming, a D.C.-area financial expert said it’s going to a bumpy road ahead; and with the market in flux, it’s not the time to make drastic changes to your portfolio.
After the worst week for stocks since 2008, investors saw a market bounce Monday when the S & P 500 index closed up by over 4%— due in part to a rumor that the Federal Reserve would drop interest rates.
“The market is likely to remain volatile until we have some visibility on the outcome of the coronavirus crisis … The market hates uncertainty,” said Peter Tanous, chair of Lynx Investment Advisory in D.C.
“This is uncertainty on steroids,” he said.
Tanous said all the market needed was a catalyst — and it got one in the form of a rumor of a decision at the Federal Reserve.
However, investors have asked him if they should lessen their stock allocation.
“If your asset allocation was the right one for you a week ago, it still is the right one for you. The idea is not to be shaken or not to panic when markets go down … For the long term, they always go up,” Tanous said.
- Full coronavirus coverage
- Coronavirus FAQ
- U.Md. professor: ‘Shamefully inadequate’ coronavirus testing leaves US behind rest of world
- DC patient being tested for coronavirus
- Health officials in Washington state report 5 virus deaths
