There are 81,000 confirmed coronavirus cases worldwide.

The pandemic doesn’t seem to be slowing down.

With the number of cases outside China increasing…

The markets are rattling and Investors are feeling uneasy.

Here’s what you should do…

Last Friday, Italy identified three confirmed cases.

By Monday, it was up to 150.

At the time of writing this blog, it’s 322.

It’s easy to see why the virus is causing pandemonium.

At least 10 cities in the north of Italy have been quarantined.

The Venice Carnival closed early.

Football matches were cancelled.

And the already-teetering Italian economy is battling.

What’s really worrying people is how far the virus might spread.

No one knows where the outbreak in Italy came from.

Which means the rest of us in other parts of the world…

Have no idea what to look out for.

And whether we too may be at risk.

Everyone’s none the wiser.

And the markets are reflecting this uncertainty.

Coronavirus and the markets

On Monday, equity markets tumbled and bonds outperformed.

More funds were flowing into perceived ‘safe haven’ assets.

It’s fair to say this may be coronavirus-related since company profits will be impacted.

And the markets will incorporate that.

The travel and tourism industry will take a particularly big hit.

People are avoiding flights to Asia.

With the outbreak in Europe, travel will be avoided there too.

The best thing for you to do as investors?

Sit tight and try not to react.

I know that’s easier said than done.

However, looking back at similar cases...

The evidence proves that, as usual, the markets always recovered.

Ensuring your Portfolio is globally diversified across asset classes is the best possible thing you can do right now.

Whether the next outbreak is east or west, north or south…

Your balanced portfolio will minimise your exposure.

And as seen over the last few days…

When one asset class weakens, another strengthens.

A diversified portfolio will put you in the best position to maximise your returns…

Despite what may be happening in the world.

Hopefully this puts your mind at ease.

If you’d like to have a second opinion on whether your portfolio is working for you, get in touch.

We’d happily look into it for you to ensure you have peace of mind during this uncertain time.