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Fears over COVID-19 coronavirus outbreak causing major stock index declines
As the COVID-19 coronavirus outbreak continues, Wall Street is feeling the negative impact, with fears over the virus prompting major drops, wiping out gains in an instant.
PHOENIX - As the COVID-19 coronavirus outbreak continues, Wall Street is feeling the negative impact, with fears over the virus prompting major drops, wiping out gains in an instant.
"We've awoken to the fact that this virus is not contained. There is going to be a disruption to the global supply chain, and businesses in the U.S. aren't going to have the earnings that we thought they'd have for 2020," said Financial Advisor Clay Netherlin.
Netherlin says stock market crises like these create tons of uncertainty. Investors and 401k contributors need to take a step back and evaluate.
"We never know. There's always going to be a next problem on the horizon. For someone in their 40s, I think you need to ride this out," said Netherlin.
For those close to retirement, they have a decision to make.
"For them, they probably should take a step back, collect what they 've made last year, and put that into other areas not as risky," said Netherlin.
There's no guarantee the market follows the same pattern that SARS and MERS brought on: volatility and then recovery. Netherlin, however, is optimistic.
"We've seen these situations before, we will get through this," said Netherlin.
According to people at Goldman Sachs, a prolonged epidemic could trigger a recession, but that's part of the unknown surrounding the virus at this time.