A sense of panic has taken hold of the market this week as the COVID-19 coronavirus continues to spread.
On Monday, the Dow Jones Industrial Average dropped 1,031 points (3.6%). Today, the Dow dipped another 650 points (2.4%) in afternoon trading.
But remember, in times like this, panicking is the absolute worst thing you can do.
So our first step for investors today is a simple one. Take a deep breath.
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Panic selling in moments like this has proven time and again to be the wrong strategy.
Today, we'll show you exactly how to protect your money from the market's extreme volatility this week.
First, here's what the experts at Money Morning expect from the markets this week.
This Is Serious, but Not a Time to Panic and Sell Your Stocks
Make no mistake: the spread of the COVID-19 virus is very concerning.
We're not downplaying that.
And as Money Morning Chief Investment Strategist Keith Fitz-Gerald pointed out on FOX Business Network's "Varney and Co." yesterday, the sell-off we've seen this week is a direct response to the uncertainty surrounding COVID-19.
"This [selling] is all about the virus, and the spread of it," Keith told Stuart Varney. "We potentially have a far more serious situation than the media or any government is letting on."
Money Morning Capital Wave Strategist Shah Gilani also appeared live on FOX Business Network to weigh in.
"This is a 'wait and see' game right now," Shah said. "And as Keith pointed out, we don't know how far the virus may spread. I believe the news out of China has been clouded from the get-go. So we really don't know the extent of it, and I think that's what investors are worried about."
If there's one thing the markets hate, it's uncertainty. Unfortunately, that's exactly what we have with the coronavirus.
It's not the answer anyone wants to hear, but we simply don't know how far the coronavirus will spread. That also means it's impossible to predict what the market will do next.
Fortunately, there are some very simple steps you can take to protect your portfolio from any more downside risk.
Here they are…