The Advisor Channel, a new website founded by New York Life Investments and Visual Capitalist, recently posted an analysis of the COVID-19 pandemic that describes it as a “Black Swan”: a rare, unexpected event that could have a severe effect on the stock market. As the analysts observed, “Few investors could have predicted that a viral outbreak would end the longest-running bull market in U.S. history. Now, the COVID-19 pandemic has pushed stocks far into bear market territory.”

The Advisor Channel also created an accompanying infographic in the form of a timeline that places the pandemic in context with other Black Swans of the past 50 years, starting with the Israeli-Arab War and oil embargo of 1973. The infographic shows the impact that the Black Swans have had on the S&P 500. “With sell-offs ranging from -5 percent to -50 percent, black swan events have all impacted the S&P 500 differently,” the analysts noted.

Regarding the current crisis, the analysts pointed out that some Wall Street strategists believe that the market will only begin to recover when COVID-19’s daily infection rate peaks. Meanwhile, governments have begun announcing rate cuts and fiscal stimulus in order to help stabilize the economy. Considering the high levels of uncertainty, what advise investors to follow Warren Buffet’s strategy: “When others are greedy—typically when prices are boiling over—assets may be overpriced. On the flipside, there may be good buying opportunities when others are fearful.”

The analysts conclude that investors need to remain disciplined with their investment process throughout the volatility. History has shown that markets will eventually recover, and may reward patient investors.

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