Innovest Memo: Follow Up Regarding Recent Market Volatility and COVID-19

The COVID-19 outbreak and recent, dramatic decline in oil prices have interjected uncertainty and volatility in global markets. Despite investors’ concerns, the economy entered this period enjoying many signs of health, especially in comparison to the 2008 recession; nearly 800k jobs have been created in the last 3 months, unemployment remains at historic lows at 3.5%, corporate earnings have been strong, and consumer debt is relatively low. While the toll COVID-19 takes on businesses and the global economy in the coming months is yet to be determined, it has begun disrupting global supply chains and raised new concerns with respect to volatility and risk. Thus far, we know the following: Continue reading.