As concern about the coronavirus outbreak (COVID-19) escalates worldwide, we at California Bank & Trust would like to emphasize a strong focus on the safety of our employees, clients and investors.
We have activated a Coronavirus Task Force to ensure the bank has the ability to operate during normal business hours. While we are being diligent about preparing for unforeseen events, we recognize a possibility that an outbreak could occur in California. Our team is continually monitoring updates from the World Health Organization, the Centers for Disease Control, local government public health services and other credible sources.
Many view the coronavirus as a delay in—not an end to—the global economic acceleration story that has been unfolding since December’s U.S.-China trade deal. That positive momentum has put the global economy and corporations in a better position to weather the coronavirus storm. Most likely there will be global economic impact from the coronavirus over the next several months, but investing fundamentals make the case for a rebound in the second half of this year, potentially with some help from government stimulus.
It’s also important to remember that before the outbreak, the global economy had started to see a pickup in momentum in late 2019/early 2020.
As difficult as it may be to stay the course in the face of recent market volatility, long-term investors may want to consider that even though the S&P 500 Index fell more than 12%, we only lost four months of returns.
Long-term investing is beneficial in times like these. For instance, short-term investors may want to search other alternatives for equities for additional capital protection.
Based on history, it is possible that we may see a return to pre-outbreak levels of global economic growth and corporate profits within the next several months—which could continue to power this bull market and economic expansion through 2020 and possibly beyond.
Remember, we are in your corner and will continue to be your financial resource. We are taking this seriously and being thoughtful in the process for what we hope will be a nonevent. [cite::171::cite] [cite::172::cite]