Should You Vaccinate Your Portfolio from the Coronavirus (and if so, how)?

 
MILWAUKEE - March 6, 2020 - PRLog -- Investors' fears about the coronavirus outbreak pushed the Standard & Poor's 500 Index into a correction (that is, a drop of 10% or more from a recent high) at a history making pace. The downturn was quickly followed by a record setting rally.  The stock market abruptly changed course once again on news that California has declared a state of emergency, with the Dow and the Nasdaq all declining by more than 2%.

The unprecedented degree of stock market volatility has caused many investors to question how their portfolios will be impacted by the unfolding crisis, says Andrew Willms, president and chief executive officer of The Milwaukee Company, a wealth management firm in Thiensville, Wisconsin.

Willms believes the extent of the economic consequences of the virus will largely depend on 3 factors: "(i) how widely and rapidly the COVID 19 virus spreads, (ii) how long it lasts and (iii) the actions governments take to contain it".

"The good news for individual investors, is that unlike institutional investors whose jobs often depend on short-term performance, individual investors with a long-term investment horizon have the luxury of time." Willms notes.

As a result, Willms offers this advice to individual investors: "If you are prepared to tolerate the short-term impact the virus may have on your portfolio (which could be painful), and do not anticipate making a significant portfolio withdrawal in the next 24-36 months, then you should not feel pressure to sell stocks now".

If, on the other hand, you think you will be tempted to sell if the market decline continues, then Willms says it may be appropriate for you to hedge against further market declines.

While there are no clear-cut answers, Willms shares his thoughts in a short, 12-minute webinar that can be found on The Milwaukee Company's website, www.themilwaukeecompnay.com/webinar.

For more information, contact:

Emily Willms

ewillms@themilwaukeecompany.com

+1 (414) 238-3232

The Milwaukee Company (TMC) is a wealth management firm based in Thiensville, Wisconsin.  TMC offers investment related services to individuals, trusts, investment entities, and charitable organizations. The company also provides insights and advice on how to reduce income taxes on investment portfolios, as well as plans to successfully transfer wealth to family members and charitable organizations. For additional information, please visit: https://themilwaukeecompany.com/
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