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It's been a tough week in the market

It’s been a tough week in the market – hopefully we can calm some fears

Corona Virus 
Fears of the corona virus spreading have shaken the market but it’s worth remembering, we have seen this before. 

In 2003 there was the SARs outbreak (swine flu) which came out of China. 17 countries were infected and an eventual 8,098 cases.  In 2009, H1N1 was much worse and spread world-wide.  At the time the Center for Disease Control declared H1N1 as a “pandemic”. There have also been the Zika virus in 2017 and Ebola in 2018. 

We don’t know the reach of the corona virus, but it’s good to keep in mind the common flu has killed over 10,000 people in the last few months and no one is panicking.

We want everyone to stay safe and as this unfolds to take precautionary measures for your health. At this point, the best guess is the corona virus spreads the same way the common flu does.

In the near term, impacts of the virus and quarantined cities will impact global growth and trade.  Once the virus clears, we usually see pent up demand fuel a quick bounce back in GDP and trade.

We may have more turbulence and uncertainty before this clears but we know the companies within client’s portfolios are solid and we have adequately planned for their cash flow needs. 

Earlier this week Warren Buffett was on CNBC – discussing things from the corona virus to politics to negative interest rates.  We believe his viewpoint are worth sharing and we can't help but draw important parallels between his investment philosophy and ours.


 Click here for full text from video


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