The COVID-19 pandemic has given the world a jolt and woke us up to the fact that we are indeed, in this together. No country is an island no matter how tightly we want to secure our borders. It only takes one infection to sneak through and before you know it, can spread to many by leaps and bounds.
At time of this writing, there are now over 40 million infections impacting 215 countries around the globe.
Many countries are experiencing a second wave of infection and there’s no sign of the spread slowing any time soon. Until we have a proven vaccine, the world is a scary place for all of us, physically, emotionally and financially.
This uncertainty continues to create chaos in the stock market. Investors’ fears have caused it to take a nosedive. Then optimism in a vaccine and a hopeful turn around in the economy roar it back to new heights not seen in 80 years.
All in all, we must brace ourselves for more stock market volatility in the days to come. More than likely, at least until early 2021 when (and if) a COVID-19 vaccine will be available (if all goes as planned on some promising research).
If your financial plan is in for the long haul, you must accept short term volatility from time to time. Re-examine your risk tolerance and see if it’s still at your acceptable comfort level. Review your life plan and see if any major changes (ie: marital status, retirement, etc.) have been taken into consideration when re-balancing your investment portfolio.
History shows us that the market is like a pendulum. It swings up and it swings down. As the saying goes, what goes up must come down and what goes down must come up … well, we shall see.
In the meantime, stay safe and stay sane.