Coronavirus: What clients and advisors need to know

March 2, 2020

By Carolyn McClanahan for Financial Planning

Clients worried about the coronavirus’s roiling effects on global markets deserve financial advisors’ best answers about its unique impact on the global economy and what we know — and don’t know — about how it will play out.

From an economic perspective, this needs to be a wake-up call to companies that rely on supplies from far-off nations. Worldwide viral pandemics occur on average every 25 to 30 years — long enough for us to lose our memory of how bad they can be and to lower our guard on preparedness.

There is one stark difference economically between the last serious pandemic in 1968 — influenza — and the current coronavirus outbreak: We now have a global supply chain that concentrates production of needed goods in just a few small areas. Lockdown of these supply chains in an effort to contain the virus is causing significant market upheaval.

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