March 19, 2020
Well, here we are again. Encountering a multifaceted market correction. “It’s different this time” we heard all the way up on this bull run and now, as real urgency kicks in, we are hearing “this one is different” on this correction.
From my perch, it was not different on the way up and it’s not different on the way down. The circumstances are always “different”. The administration of the market event is always the same. Selling begets selling. The circumstances surrounding this are different and are very real.
We are dealing with a very real healthcare crisis on a global level. This is absolutely a reason to be concerned and to follow the policies and procedures being implemented.
We are also, once again, dealing with a very real issue in the short-term funding market.
My belief is that the Federal Reserve and the Treasury will find a solution that calms the short-term funding markets, and this will allow stock and bond, as well as currency markets, to stabilize. We are not there yet, but we will get there.
The COVID-19 crisis is very real, and we all need to take this seriously. People are going to get sick and there will be more deaths. It is incumbent on us all to do our part and follow the policies we are implementing.
The greatest concern, as always, is the uncertainty. No one can know how long this will last and how deep the impact will be on the economy. I believe there will be opportunities on the other side of this. I also believe there will be a serious economic impact both on an individual and corporate level.
I also firmly believe we are a strong, resilient country, and we will come out of this stronger. Betting against the United States of America has historically been a bad idea, and I’m confident that track record will remain intact.
Please everyone follow the policies that are being implemented at the local and state level. Know that every crisis always looks untenable when you are in it, but in the rear-view mirror we will learn and be better on the other side.
Be well and God bless.
Doug Hendee, CFP, Chief Sales Officer & RJ DeMonte, Financial Advisor