Coronavirus: Match investing strategies to your personal circumstances – Charles Schwab

There is no one-size-fits-all answer for how to respond to an event such as coronavirus. The best approach is to match investing strategies to your personal circumstances. Economists at the Schwab Center for Financial Research share a few steps to consider.

Key quotes

“Appropriate portfolio diversification among various asset classes is very important. This includes domestic and global stocks, large-cap and small-cap stocks, and various fixed income investments, among others.” 

“We strongly recommend periodically rebalancing your portfolio back to its long-term asset allocation targets.” 

“U.S. large-capitalization stocks continue to be preferred over small-cap stocks.”

“Within your fixed income portfolio, we strongly suggest moving up in credit quality and exercising caution around riskier securities, such as high-yield bonds.”

“Don’t overlook the importance of diversification within the international portion of your portfolio.”