COVID-19: Context in Chaos

The speed and scope of developments related to the COVID-19 pandemic has been breathtaking. Unfiltered, raw data has poured out around the globe but with little explanation of what it all means.

While the flood of information is remarkable, it can also be overwhelming, and in some cases counterproductive. This is particularly true in the investing world. 

The nature of investing calls for a long-term focus, not a knee-jerk reaction to the minute by minute details as they unfold. Unfortunately, the deluge of datapoints used to fill a news cycle now measured in minutes—not hours or days—has led to dramatic reactions that have markets down sharply one day only to reverse course the next.

That’s why in times like these we draw on our decades of experience to separate useful information from the simply sensational. Based on our assessment, the following is what makes us optimistic about the future, and what we believe is important in providing context to the latest headlines:

  • The Federal government is acting quickly to unleash $1 trillion into the economy to help offset the impact caused by COVID-19.
  • The company’s you hold in your portfolio have strong balance sheets and should be well-positioned to endure the storm.
  • Lower oil prices mean lower prices at the pump, which means a break for the middle class each week when they go to fill up their cars.
  • Interest rates are at historical lows which benefit consumers in the form of lower loan rates and cheaper mortgages.
  • Dozens of companies around the globe are working furiously on a vaccine and treatment for COVID-19. Everyday progress is being made on a solution.

As difficult as these times are—and we know they are plenty challenging—we’ve been here before. Whether Black Monday of 1987, the tragedy of 9/11 or the Great Financial crisis last decade, private ingenuity, hard work and appropriate government action combined to prevail.

Thank you for your continued support. 

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Past performance does not guarantee future results.

Investing involves risk, including the potential loss of principal.

Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market.

There is no guarantee that a particular investment strategy will be successful.

The statements and opinions expressed in the articles or appearances are those of the presenter. Any discussion of investments and investment strategies represents the presenters' views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. Any forecasts may not prove to be true.

Economic predictions are based on estimates and are subject to change.