As our new “normal” has been shaken, at times you may be feeling disoriented, fearful and anxious—I know that I have. The coronavirus has impacted the global economy unlike anything we have seen in the past. The uncertainty of its’ length and impact are adding to unusual volatility in the markets and our emotions that we are all experiencing. This is quite a shock after many years of the markets grinding higher without a bear market, low unemployment and relative calm in the United States.
At these times, I think it is important to take a step back. We have felt the pain of seeing account values drop, hearing that friends and family have been laid off and feeling like we may not make it out of this slump. I think that there will be a silver lining in a situation that looks dire. As a country and a nation, we have stood up after being knocked down time and time again. Every time the situation is a little bit different and tests us in another way. During this test, we have experienced compassion from others:
• People keep caring for and helping each other.
• The world is doing its best and working hard to stop the contagion.
• Families and neighbors have adopted social distancing.
• Those of us that can and are still working will keep doing our jobs.
• Innovators are innovating.
• Vaccines and medicines are being developed.
The world has slowed down, but progress has not stopped. The world will not end. Some of the greatest inventions have come out of tough times—like the electric razor, the car radio, the chocolate chip cookie (one of my favorites) and Monopoly to name a few.
On the money side, we also need to stick with our plan and the strategy. In the face of uncertainty and extreme volatility, panicking and acting emotionally with your money has not been a winning strategy. Believe in your long-term plan and make decisions accordingly. Please don’t panic. Be smart. Understand the risks of everything you do and take necessary precautions.
Once America is back to work and the quarantine is over, the financial markets should start to recover and eventually stabilize. Until then, we will weather the volatility the best that we can and stick to our overall game plan. This is a good time to update and review the plan and discuss future strategies.
I am grateful for the trust you have placed in me to help manage your wealth. Let me know how we can help. Stay safe and be healthy.
All the best to you and your family.