Fresh variation in the COVID-19 virus spooked investors over the Thanksgiving holiday. Fears of the virus rather quickly gave ways to fears of missing out on further market gains, then turned about again. The u-turns brought these tenets to mind:

• Even if not presently expressed, investment risk is always present. That is, if for no other reason than we don’t know what the future may hold, investing is risky. Still, markets may be surprised when potential risks are realized
• Markets can express unknown risks differently than known risks. And attitudes regarding known risks can shift over time, sometimes quite quickly
• Markets often see quick shifts in fear and greed that can leave long-term thinking at odds with short-term movements
• We think investors are best advised to develop and adhere to long-term plans that take market risk as a given and accommodate exposure near to a comfortable limit

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