With the news of the past week and what we are going through now with the coronavirus and the economic shutdown of our country, there are some pockets of optimism. Several different medicines and combination of medicines are being tried, some with amazing results. And, a vaccine may be closer than the 12-18 months normally needed to get one to the market. And, in my humble opinion, I believe we will begin to turn the tide in the last week or so in April. BTW, just like in equities, that’s not a guarantee.
I’m not sure how the equity markets will respond going forward. Only new and unknowable information will cause equities to react. However, despite the fear mongering, we will get over the coronavirus and begin the long road to recovery. Sir John Templeton, one of the best value investors of all time, said, and I quote, “There will always be bull markets, followed by bear markets, followed by bull markets”.
By now, everyone knows that the government is on the way to “help us”. Keynesian economics, pumping money into the system, may help and that remains to be seen. The paycheck protection plan and the economic injury disaster loan should help both large and small businesses stay afloat. Again, the biggest issue is still the unknown.
I have attached the article “Stimulus Package, Everything You Need to Know’ and there is some very useful information. For those with an IRA and are on the IRA Required Minimum Distributions mandate, you can now choose to not take it. And, any need to take an early distribution will not be required to pay the 10% early withdrawal penalty. It’s worth reading.
As always, should you have any questions or just wish to talk, just email or call so we can schedule something.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.