Coronavirus: What Pandemics Often Do To The Market

Are you worried about how coronavirus might impact the market or your financial plan? Let’s look at several past epidemics to see what the market has done historically.
Share this episode with a friend:

Today’s Question:

Are you worried about how coronavirus might impact the market or your financial plan? Let’s look at several past epidemics to see what the market has done historically.

Click on the timestamps below to jump to specific topics. 

Confidence Corner

In light of coronavirus, we are talking about different pandemics and how they have changed the market. What kind of world events have impacted your finances? How do you prepare for them financially?

We can’t know exactly what the market will do, but we can see historically what has happened when the world is hit with a health-related pandemic. On this episode of the Financial Answer podcast we will talk about Covid-19, SARS, Ebola, swine flu, and the Spanish flu.

Last year was really good in the market, but right now we are anticipating a global scare due to coronavirus. While there are serious health-related components and several deaths involved, we will focus this podcast on the financial impact on the market. In many of these cases, production was slowed while people were not at work which then caused some downturns in the market.

Timing of things is what can impact you the most. If you are several years (or decades) away from retirement, this shouldn’t cause you to have a knee-jerk reaction. On the other hand, if you are within a year or two from retirement, you should already be allocated in a more conservative way because we can’t predict the market. Obviously, this isn’t ideal, but it’s not realistic to assume the market is without risk. Working with an advisor you trust will help you to set a plan in place so you can be disciplined to weather the market volatility or health scares the world is experiencing.

We can’t see the future and don’t know what will happen right now with the coronavirus. It could get worse or it could turn around quickly. Try not to panic, but have a plan in place that you feel comfortable with. Hopefully looking at history can help you keep perspective and create a reasonable financial plan. (And don’t forget to wash your hands!) 

Listen to the full episode above or click on the timestamps below to hear about the various pandemics of the past.

[1:25] – All pandemics affect the market.

[3:19] – Coronavirus is definitely having an impact on the world right now.

[5:00] – SARS caused a drop in the market, but it was back within a few months.

[7:09] – Ebola affected the market for about eight months.

[11:43] – Swine flu caused a dip on top of the market downturn we were already experiencing in 2009.

[13:02] – DOW Jones market data shows that things rebound within six months.

[15:20] – The Spanish flu killed millions in 1918, but the market only declined 10 percent.

 

 

A Point Of Wisdom:

 

Related Content:

PODCAST: Inheritance 101: Everything You Need to Know

PODCAST: 5 Biggest Storylines of 2020: Will They Matter Financially?

PODCAST: What Mistakes Do Bad Investors Make?

 

Additional Resources:

Schedule A Meeting

Download Your Retirement Rescue Toolkit – Learn More About Our Firm

 

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend:

EXPLORE MORE EPISODES

Can’t Get No Satisfaction… Or Can You?

Want to know the secrets to experiencing satisfaction in retirement? Believe it or not, it’s not all about having $10 million in the bank. Nathan shares five key factors that will leave you feeling satisfied and at ease about your financial plan and situation in retirement.

Listen Now »

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

SUBSCRIBE

RETIREMENT RESCUE TOOLKIT

How You can Become a More Confident Investor and Truly have Peace of Mind

GET YOURS NOW!

If you’re ready to finally have peace of mind with investing then you’ve come to the right place.

My Free Investor Awareness Guide, Book and audio CD will reveal the mistakes that cost investors tremendously over their lifetime.  These mistakes often lead to poor performance and frustration with investing.

Best of all I’m going to send everything to you FREE – just fill in the form and click the “send my kit” button – we will ship it out to you immediately.