Its year 2020 and a virus is taking over the world. It originated in China but through various modes of transport, the coronavirus has caught the attention of the international community. The virus has caused the implantation of travel bans and quarantining certain individuals amongst other measures taken to constrict any further damage. Many people may have also witnessed a drop in the performance of their in investing portfolios whether its their 401k or traditional brokerage account.
The disruption this disease has caused in the 2nd largest economy has had a ripple effect to other countries. Just think how much stuff is manufactured in China. With many people in the country out of work for a week or 2, it slowed down global production which caused some large retailers to look elsewhere for deliveries that they normally would received from China. This caused fear with investors and all major indices saw a loss over the 5-7 trading sessions. The Dow Jones have multiple sessions of losing close to or over 1000 points. Will this continue is to be seen. What dips like this create are buying opportunities depending on your outlook. Some economists have predicted we aren’t quite at the bottom of the dip. Either way, if the stomach continues its historical annual average of around 9.8%, this is certainly a dip if you are a long-term investor.