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The Market’s Response to Epidemics

from Don Nalls, The Nalls Sherbakoff Group, LLC.

Dear friends,

As a fiduciary, fee-only firm, the Nalls Sherbakoff Group believes that accurate, timely information is the best antidote for fear. Thanks to our partnership with Dimensional Fund Advisors and their excellent research team, we have this new chart than shows the market’s response to every epidemic  since 1994. These epidemics include, but are not limited to: pneumonic plague, Ebola, Zika and SARS. Note that in one month after the epidemic the frequency of positive returns was 67%; after 12 months it was 100%! As we have said before, and surely will say again, the most dangerous words in economics are, “it’s different this time.” Of course, it never is.


The Nalls Sherbakoff Group, LLC

DISCLOSURES: The information provided in this letter is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as investment, legal, or tax advice. The Nalls Sherbakoff Group, LLC makes no warranties with regard to the information or results obtained by third parties and its use and disclaim any liability arising out of, or reliance on the information. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of The Nalls Sherbakoff Group, LLC. Past performance does not guarantee future results.