Coronavirus fears are not a reason to sell in this market

Last week, global markets added the word “coronavirus” to their collective vocabulary. And with that, the calm that had settled over financial markets in recent months was shattered. Emerging markets and Asian equities bore the brunt of the blast, while in the United States, concerns about the virus were evident on Wall Street on Friday, with the S&P 500 down about 1%, its worst drop since October. Markets were supposed to come back down to earth after a more than 30% rise in 2019, but the arrival of the coronavirus has added a layer of unforeseen complexity. Irrational fears can move markets sometimes violently, and that leaves investors wondering if it’s a good idea to simply hunker down and wait out the storm. So, should they? Yes, and here’s why. Based on past incidents like the SARS outbreak of 2003, the virus isn’t likely to be more than a one-time event. While specific industries will probably take a big near-term hit from these worries–think shares of airlines, casinos, and other companies with exposure to China–the coronavirus doesn’t seem to have the staying power to move markets for more than a short period. In the U.S., the S&P 500 was already