Coronavirus Sparks Market Selloff - The Benefits of Staying Invested

Adam Recker, CFA, CFP® & Michael Furla, CFA, CFP®

Low rates continue to be a boom for both equity and fixed income markets. The Fed lowered rates for the 3rd time in 2019 and adopted a more accommodative monetary policy than previously held. Going forward, the Fed is signaling a wait-and-see approach to additional rate changes, leading many to believe that rates will remain unchanged throughout 2020. In addition to low rates, the easing of hostilities in the US/China trade war also helped to bolster investor confidence and rally the markets. With the phase one trade deal expected to be signed in Q1 2020, investors remain optimistic that continued progress will help drive positive market performance. International equities have continued to underperform relative to their U.S. counterparts. However, when looking at valuation metrics, international equities are looking increasingly attractive to investors.

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