Investors have continued to sell global equities and other risk assets like high yield bonds and corporate debt, as continued economic impact from the COVID-19 virus becomes apparent. The U.S. equity market has continued to be very volatile, with big swings this week. The clear implication is that global growth will come down, as concern about China and neighboring countries has now migrated to our shores.

Bond investors continued to be positively rewarded during this time period, benefitting from central bank polices to lower interest rates around the world. The U.S. Federal Reserve (Fed) once again lowered rates after doing so three times in 2019, responding to changes in market rates and attempting to provide support to the economy.

Investors have again become more pessimistic and global equities have sold off over worries about the continued spread of the SARS-Co V-2 (Wuhan Coronavirus) beyond its epicenter in the central province of Hubei. Infections have now been reported in 28 countries, and news from Iran, Italy, and Spain provoked fear about what could happen in the U.S. The Centers for Disease Control and Prevention (CDC) today warned about potential “disruption to everyday life.”