Coronavirus: Assessing the Market and Global Economic Impact
CFA | SVP, Chief Investment Officer
1 The Broader Global Economic and Business Impact
Data released Friday February 28th from China’s National Bureau of Statistics and Federation of Logistics and Purchasing governmental agencies, shows that both manufacturing and services in China fell to the lowest level ever recorded for the nation.
2 Global Market Impact
The renewed escalation of concerns about the spread of COVID-19 the week of February 24th, with outbreaks in Korea, Japan, Iran, Italy, and 56 nations worldwide, sent global equity markets tumbling and prompted President Donald Trump to call a rare press conference where he put Vice President Mike Pence in charge of the US response.
3 What Should You Be Doing or Thinking About When Something Like This Happens?
Contrary to my long and detailed explanations and observations above, the reaction function on your side should be centered on the “KISS” acronym (not the band).
Your investments in securities, annuities and insurance are not insured by the FDIC or any other federal government agency and may lose value. They are not a deposit or other obligation of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amount invested. Past performance does not guarantee future results.
First Citizens Wealth Management is a registered trademark of First Citizens BancShares, Inc. First Citizens Wealth Management products and services are offered by First-Citizens Bank & Trust Company, Member FDIC; First Citizens Investor Services, Inc., Member FINRA and SIPC, an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor.
Brokerage and investment advisory services are offered through First Citizens Investor Services, Inc., Member FINRA and SIPC. First Citizens Asset Management, Inc. provides investment advisory services.
Bank deposit products are offered by First Citizens Bank, Member FDIC.