Now is not the time to try and time the markets
After showing great resilience, and perhaps a degree of complacency, equity markets have fallen sharply in recent days. A relatively sudden surge of confirmation of corona virus outbreaks outside of China has been the main trigger for the correction. However, Apple's removal of previous earnings guidance and a deterioration in some leading economic indicators (such as the preliminary reading of the U.S. Purchasing Managers Index and the Baltic Dry Index) have also played a role in the share market sell-off.
At the time of writing (26th February), the Australian share market, as measured by the S&P ASX 200 Index, has fallen by 6.1% from its high of February 20th. This is similar to the 7.3% decline recorded by the U.S. S&P 500 Index over the same period.
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|Tags: investments interest rates Bonds Coronavirus Share markets Global outlook Rhodes Docherty|