Health and wealth are inextricably linked. While our main goal is to look after your financial health it’s probably a good idea to remind you the Coronavirus that has swept through parts of China (Wuhan) and is beginning to spread globally. Quite often the fear of a pandemic is often worse than the pandemic itself. And that may well be the case. The common flu is going to kill more people in North America than the Coronavirus and many other ailments. Information can be found at the following health Canada link: https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/frequently-asked-questions.html
So do we worry about getting the virus or do we find the opportunities that may come out of this situation. The Chinese word for “crisis” is frequently invoked in Western motivational speaking as being composed of two Chinese characters signifying “danger” and “opportunity” respectively. The danger of course is the coronavirus. We all have to take precautions not to spread the germs. Of course many people practice good hygiene all year round with or without flu season upon us. So where are the opportunities? There could be some companies benefitting from the sales of products relating to the prevention of spreading this virus, potential continued market upside. Vacation packages such as cruises and other travel could see additional discounts during this time. The coronavirus is now having the effect of some companies missing their revenue targets because factories are either closed or not running to normal capacity. This means that some people will become skittish if they think that companies cannot produce the same or higher earnings. There may be the opportunity to dollar average into your favourite holdings.
Whatever the danger, take precautions but also look for the opportunities that may present itself. If history is any indication there should always be an upside to any downside. It may not be obvious at first. Just something to think about while we are all affected in some way by the Coronavirus. If you want to review your portfolio at any time to see how the coronavirus or an economic downturn may affect you and your financial goals, please don’t hesitate to call to book an appointment.