March 23, 2020
As the country and the world grapple with a still-expanding global pandemic, international economic activity has been disrupted and markets have been wildly volatile in recent weeks. While staying safe and healthy is uppermost in everyone’s mind, people are also understandably concerned about the long-term effect the virus may have on the economy, markets and their own financial lives.
“One thing is clear: We are living in unprecedented times,” says Candace Browning, Head of BofA Global Research. Browning hosts a new “Market Edition” of the Perspectives podcast offering insights on the critical questions investors are asking right now. Questions like: Should I pull back on stocks, or could this represent a buying opportunity? What areas of the market offer potential for growth? Will government policies help the economy? Listen to the conversation here.
Coronavirus and the Markets
What investors can consider doing now
While no one alive has seen a situation quite like the mass global shutdowns spurred by the coronavirus, history does speak to the importance of staying invested through severe market turbulence, says Chris Hyzy, Chief Investment Officer, Merrill and Bank of America Private Bank. “We know that the best days often follow the worst.”
That said, Hyzy adds, “Diversification can show some of its greatest benefits in the most difficult times. It’s important to have a disciplined plan and rebalance periodically as capital market activity continues to unfold.”
“If history is any guide, this is a moment to hold on,” agrees Jared Woodard, Director for Global Investment Strategy, BofA Global Research. “If I could give some non-market advice,” he adds, “just take care of each other.”
Information is as of 03/23/2020
Opinions are those of the author(s) and are subject to change.
The Chief Investment Office, which provides investment strategies, due diligence, portfolio construction guidance and wealth management solutions for Global Wealth & Investment Management ("GWIM") clients, is part of the Investment Solutions Group (“ISG”) of GWIM, a division of Bank of America Corporation (“BofA Corp.”).
BofA Global Research is research produced by BofA Securities, Inc. (“BofAS”) and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC, and wholly owned subsidiary of Bank of America Corporation.
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.
Equity securities are subject to stock market fluctuations that occur in response to economic and business developments.
Investments in foreign securities (including ADRs) involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets.
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