After strong market returns in 2019 and continued upward trajectory in January, global equity markets have confronted heightened volatility.
The S&P 500 posted a negative return of 8.3% year-to-date, but still has positive returns for the trailing 12-month period ending February 28, 2020. The U.S. Treasury market has served as a safe haven, resulting in interest rates declining to record lows.
Senior Investment Officer
AIG Retirement Services
The recent market decline has been triggered by impacts surrounding the Coronavirus, officially known as COVID-19.
As uncertainty remains regarding the public health aspects of this virus, it’s still too early to answer key questions such as how many people will be affected and how long will this virus last. This public health ambiguity has been transmitted into the financial markets with concerns around the impact to supply chains and future economic growth.
Additionally, there is the concern that a continued slowdown in growth could trigger a global recession. As with any period of market volatility, it’s important to maintain a long-term perspective and remember time-tested principles of financial planning and investing.
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