Update March 12, 2020
This update affirms and enhances our original post on February 2nd.
These two references have been added:
(1) Credible guidance from WELL for Life from Stanford.
(2) This post from the Collaborative Fund titled Corona Panic. It's not long. Click here to read it.
Original post.
We’ve received several “Should I do something with my portfolio?” inquiries relating to the COV-19 (Coronavirus) outbreak. We know that if there are “several” inquiries there are more unspoken ones in the woodwork. Hence this short post.
First, here are the WHO (World Health Organization) recommendations for protecting your health and those around you. And here's a similar one-page CDC factsheet. Do those things first.
The summary bottom line on investments is this: “Stay the course” until your asset allocation guardrails are violated. Portfolios with equity or fixed income allocations in excess of 80% may need to lightly rebalance. Typical portfolios can be left alone.
Also know that extreme downside volatility is often followed closely by extreme upside volatility. So don't try and finesse this.
Keep in mind that news outlets can only exist if they arouse your passions. But aroused passions are counter-productive to good investing.
If you have a question or concern about any of this, please contact us.
In the Dallas-Ft Worth Metroplex jim.cosgrove@verizon.net 972-489-0262
In the San Francisco Bay Area jimcos42@gmail.com 408-674-6315
