The Wuhan coronavirus headlines are scary: More than 1000 deaths in China since late last year, and over 40,000 confirmed cases globally. Thirteen cases so far in the United States, and thus far no vaccine.

The virus outbreak has shackled the Chinese economy, which was already hurting from the trade war, and shaken its markets. In the U.S., it sent the Dow Jones industrial average plunging more than 600 points on January 31 amid fears that the Chinese slowdown would affect U.S. businesses.

How concerned should you be about your investments? For the long term, not very.
Wall Street analysts estimate that the virus's impact could shave up to half a percentage point off of economic growth in the first quarter, but they expect a rebound in the ensuing quarters and positive growth for the year.

Health researchers believe that the disease's spread is likely to peak in mid-to-late-February. Warming weather should help, and of course a vaccine, which drug makers are working on, would be a game changer.

That said, there are sure to be short-term losers. Developing Asian countries that rely heavily on trade with China are feeling significant economic pain. And U.S. companies that are especially exposed to China – like those in the travel or gaming industries – will likely bear the brunt of the pain.

But in the larger picture, the Wuhan coronavirus is likely to be a temporary obstacle to the market's healthy long-term growth. Experts point to other viral epidemics, such as Ebola, SARS and Zika, and argue that market losses were recouped quickly in each case after it became clear the spread of the diseases had peaked.

Could the current coronavirus be different? It's conceivable. China has become a global powerhouse and its economy is much more intertwined with the rest of the world than during, say, the 2003 SARS outbreak.

Still, I believe the Wuhan coronavirus will ultimately be a passing story. Rather than playing defense, I'm looking for any market pullback that might be an opportunity to invest idle cash. Please don't hesitate to contact us if you'd like to discuss your investments.