The global equity and debt markets continue to rise, and fall based on the news of the day around Covid-19 and oil. Like many readers, I listen to the news and watch the briefings in the afternoon regarding information of how this global pandemic is affecting our day-to-day lives, our economy, our physical and emotional well-being. We all handle stress in different ways, but let’s not allow stress around the circumstances to be pointed at each other. We are very fortunate to live in an area where we can get outside, go for a walk or hike and maintain our distance from other people. Like you, I know and speak with people in New York City or Los Angeles where you don’t have the luxury of walking out your front door walking down the road for fresh air and exercise.
I truly believe that in the not too distant future we will turn the corner on this pandemic and our lives will become better but maybe not the same. I believe that more people will continue to work remotely than in the past. I believe our cities, where there is a high concentration of people will be more prepared for situations in the future. Just like September 11, 2001 changed our nation and the way we went about life, I believe this event will also change us, hopefully for the better.
The US equity markets have pulled back sharply, rallied, and I believe will move sideways with some volatility. We may test or punch through recent lows to make new lows in the market, but there’s just no way to know for sure at this point. I believe we need to maintain liquidity in our portfolios and scale into positions that we feel are going to be good companies or asset classes when we come out the other side of this unprecedented shock to the markets. The difficult part is to try to gauge the impact on certain types of business going forward. Many small businesses like restaurants and retail that employ a lot of people may not be able to sustain a shutdown that goes on an indefinite amount of time. I realize that many of us are trying to support these businesses but unfortunately all our efforts may not be enough.
I am encouraged by corporations that are now producing needed medical equipment and supplies to get our country through this difficult time. The collaboration between government and private business to navigate times of crisis is what makes our country shine!
So, let’s not allow ourselves to become paralyzed with fear and do nothing with our investment portfolios, but pick our spots and put money into the right places, depending on our objectives so that our futures are greater than our past.
M HP asset management can work with you through videoconferencing, DocuSign and electronic methods during these difficult times.
