Good afternoon,
The week will end with the stock market down sharply as investors dig in and assess the impact of the coronavirus outbreak on the economy.
The sell-off moved into correction territory as record highs on stock indices moved steadily downward with a velocity that was reminiscent of the financial crisis of 2008 and 2009.
The State of Delaware, earlier this week, issued guidance on the situation for businesses and individuals and stressed that no cases have been detected. This came as the U.S. Public Health officials said the spread of the virus was not a matter of if, but when.
It is clear that the virus has temporarily damaged economies as nations like Japan and South Korea attempt to limit the outbreak.
China is opening some factories in areas where the effects of coronavirus are not as widespread.
Meanwhile, sobering bits of news continue to emerge, including a case in the U.S. that seems to have no ties to travel to China or exposure to individuals suspected of being around the virus.
Again, there is no need to panic. Flu remains a bigger concern, with the death toll rising in Delaware. The usual precautions apply including washing hands frequently.
Updates have been coming in during the week from investment firms. The advice is to sit tight and wait for further news. Right now, that seems to be the best course of action.
Enjoy your weekend and don’t spend too much time looking at the damage to your 401 (k) or reading too much into social media posts. – Doug Rainey, chief content officer.
