Well here we are….one quarter into 2020, and the risk event we’ve all been waiting for has finally arrived. Volatility as measured by the VIX Index touched all time highs over the first quarter as the Coronavirus spread from China to Italy and the rest of the world.
The stock slide here in the United States was fierce, but a late quarter bounce regained a substantial portion of the lost ground. More ground, in my opinion, than the numbers really support.
From here, small cap and emerging markets are starting to look like wonderful bargains. But without knowing the extent of the economic damage & how long the world will be sheltering in place, it’s difficult to make that argument with too much confidence.
Here’s this quarter’s market update.