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A Few Ideas On Protecting Your Portfolio Against The Coronavirus

Dale Roberts profile picture
Dale Roberts


  • The coronavirus scare is grabbing headlines and more than grabbing the attention of investors.
  • There is the risk of lower economic growth around the globe. We already see reduced economic activity in some areas.
  • If things get real bad on the human tragedy scale, we could even move into a deflationary environment.
  • That said, viral scares are usually quickly dismissed by the stock markets.
  • Perhaps COVID-19 will have the final say with respect to the markets.

Hopefully you were prepared for coronavirus several months ago, and several years ago. We should always be prepared. There's always something coming. We just never know what it is, what it will be called, and where it will come from. And not to discount the human tragedy of coronavirus. It's real and certainly the human side of the story is more important than money, and portfolios.

But these scares offer a friendly and courteous reminder. And they come with regularity. This list is courtesy of David Rosenberg of Rosenberg Research and Associates.

  • 2010: Double-dip recession risks

  • 2011: U.S. debt downgrade

  • 2012: Default risk among Europe’s “PIGS” (Portugal, Italy, Greece and Spain)

  • 2013: Markets have a “taper tantrum”

  • 2014: Ebola outbreak

  • 2015: Oil price plunge, energy recession

  • 2016: Chinese currency devaluation, emerging markets turmoil

  • 2017: First year of Trump presidency

  • 2018: Fed overtightens, yield curve inverts

  • 2019: U.S.-China trade war

  • 2020: Coronavirus

Investors should always be prepared for the next big one. Once again, it’s time for a gut check. Are you investing within your risk tolerance level? If you need to take steps, we’ll look at what you can do to shore up your portfolio.

Once again, there is nothing more important than our health. Wealth is nothing without health. We all feel for the citizens of China and those affected around the world. Let’s hope the suffering is contained as much as possible.

These events cause stress to all. That stress can be exacerbated as folks look at their portfolios and read the investment headlines. It looks like scary stuff.

It is real, and scary.

From CNN Business:

Of course the "mask shot" is standard practice.

But usually the market ignores health scares. Let's see what has happened to US stocks in past health scares and events.


Image by PublicDomainPictures from Pixabay

This article was written by

Dale Roberts profile picture
Dale Roberts is the Chief Disruptor at the Cut The Crap Investing blog. Cut The Crap will introduce Canadians to the many sensible low fee investment options in Canada. Canadians currently pay some of highest investment fees in the world. Dale will help Canadians on the path to creating their own low fee portfolios or direct them to the lower fee managed portfolio solutions. Dale was a former Investment Funds Advisor and Trainer at Tangerine Investments, and is a still recovering former award-winning advertising writer and creative director. Dale has been writing on Seeking Alpha from 2013, covering asset allocation, dividend investing and retirement. As always past performance is not guaranteed to repeat. You should always conduct your own research or speak to a financial advisor. If you don't know what you're doing, don't do it. Dale's articles are not investment advice.

Analyst’s Disclosure: I am/we are long BNS, TD, RY, AAPL, BCE, TU, ENB, TRP, CVS, WBA, MSFT, MMM, CL, JNJ, QCOM, MDT, BRK.B, WMT, TXN, PEP, LOW. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Please always know and invest within your risk tolerance level. Always know all tax implications and consequences.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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