You might have seen headlines over the past week that read something like this: 'Coronavirus wipes $40 billion off ASX' or 'markets in freefall in worst day of 2020 so far'.
Sure, things aren't going so well for investors who have probably become used to waking up every morning to their stocks in the green.
But how bad are things really on the ASX?
Well, the benchmark ASX index – the S&P/ASX 200 (INDEXASX: XJO) – is currently sitting at 6,935 points at the time of writing. It has indeed dipped over the past few weeks, and it was only back on January 22 that we saw the ASX 200 at 7,132 points.
We also first saw the 6,940-threshold reached (for the first time ever) just a few days before that. At that time, everyone was crowing about what a stellar run the markets were having and how it was only upwards from here.
That's right, the last weeks' 'market carnage' has only pushed the ASX back to mid-January levels. Hardly a cause to panic in my view.
How bad are the markets?
Now, I'm not making light of the very serious situation surrounding the coronavirus.
But I am making light of how exaggerated and (frankly sensationalist) some of the coverage surrounding these market moves has been over the past few weeks.
It's well known that 'negative' news draws more eyeballs, which are a virtual currency of the internet these days. So I think all investors should be aware of this dynamic and not be drawn into making misinformed or poorly-timed investment choices (like selling perfectly good shares for a perfectly awful price) just because of a dramatic headline.
Remember, the ASX is still at historic highs. We're still at levels that we never touched in 2019.
Blue-chips like Woolworths Group Ltd (ASX: WOW), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL) have all netted investors double-digit gains in just the past six months (even on today's prices).
Growth investors buying shares like Afterpay Ltd (ASX: APT) have done even better (again, even on today's prices).
Foolish Takeaway
It's sometimes hard to keep a clear mind when black-swan events like the coronavirus rear their ugly heads. And in the ASX's long and varied history, there have been many such events.
But having to deal with them is part of being a stock market investor – and none have caused any terminal damage to our ASX share market to date (touch wood). I think those points are far better off being observed than some of the headlines out there!
