Investments and Corona Virus

March 12, 2020

We have entered a Shock and Awe phase of the Corona Virus – that which was an ocean and more away from us is suddenly here on our doorsteps.  Sporting events that seem to be so critical to our existence – March Madness, the NBA, Baseball, Hockey are now suddenly postponed or canceled.  Schools, churches, concerts, events and so on are all being temporarily closed.  Social Distancing is the new politically correct term for “keep your distance”.  While the virus threat has been ever lurking – it is now pounding on our doors and seems to have an insatiable appetite.  Sometimes when the unknown so dramatically enters our lives we knee-jerk response to the fear associated with uncertainty and we hoard toilet paper and water and de-risk our lives – sometimes that means we sell financial assets. 

 

We still have a list of things associated with the Corona Virus that are very real and menacing:

 

  • Test kits for the virus in the U.S. are not readily available

  • Concerns about medical facilities to handle a potential rash of virus victims

  • Economic impact on our lives – our ability to recover

  • Fear of fear itself

 

In the midst of things that aren’t working as well as we would hope, it is critical to remember that the vast majority of people not only survive the virus; but, also return to normal life.  In no way is the previous statement meant to diminish the loss of life that has been caused by the virus – just a reminder in the constant drone of nasty things that can happen via the virus that life does and will move forward. 

 

We believe there will be an economic recovery that will not only move the stock market valuations higher; but will ultimately move them higher than where they fell from.  Historically low interest rates, global government stimulus, consumer friendly energy costs and pent-up demand from both business and consumers will serve as the underpinning to an attractive economic rebound.  Stay the course – you own great assets, let them work for you as they have in the past. 

 

Good sources for Corona Virus information:

Center for Disease Control (CDC) https://www.cdc.gov/coronavirus/2019-ncov/index.html

World Health Organization (WHO) https://www.who.int/emergencies/diseases/novel-coronavirus-2019

Utah Health Department - www.coronavirus.utah.gov

Hotline phone number:  800 456-7707

We wish you, your family and friends good health as we work together through this Corona Virus. 

 

 

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