2020 got off to a strong start with the S&P 500 rallying almost 5% through the first 7 weeks of the year (YCharts); however, the market’s positive momentum came to an abrupt end during the last week of February. US stocks pulled back about 13% amidst fears of a rapidly spreading coronavirus and the potential impact on the global economy. We closed the month down roughly 8.5% for the year after several months of relative calm (YCharts).
While the spread of the coronavirus wasn’t the only news in February, it has been the most talked about market risk over the last few weeks. As such, we have outlined some key points when it comes to investing and the potential impact on your portfolios.