A whirlwind week as coronavirus takes its toll
It’s been a whirlwind week for our markets as the impact of the coronavirus outbreak continues to grow.
Monday was the worst day in a decade for our share market as more than $100 billion was wiped. To that point we’d lost a full year of gains in just 35 days.
This is obviously bad news for those of us deriving income from investments or superannuation as there have been significant falls of up to 20%.
The flipside is that petrol prices are falling and will continue to do so, so we’ll pay less at the bowser. This, combined with some interest rate relief may serve to stimulate a small amount of spending confidence, as people feel a slight easing on the monthly budget.
Monday’s trading in the US saw the biggest single day fall since the GFC, but the good news is that Tuesday’s local trading brought some relief, with the share market making a 3% gain.
Our general advice to clients has been to stay the course and trust in your investment strategy over the long term. However, if you feel uncertain or have any questions, please don’t hesitate to get in contact.