Times we are experiencing have never happened before.
Today, in an attempt to be relevant, I’ll just tell you what I have been observing about the virus, the economy and the stock market. Understand, this is one man’s opinion. Others in my profession may see it totally different, and I’m not going to say that they are wrong and I’m right. I will say that I am basing my observations and opinions on my 36 years in the business of financial advice.
I’ll say first that the times we are currently experiencing are like nothing that has ever happened before in America. Because this virus is three times as contagious and 100 to 200 times as lethal (based on current information) as the normal flu, that tells me why the health officials have been running around like their hair is on fire, warning us to STAY AWAY from each other.
The Swine Flu of 2009, according to Wikipedia, infected 60.8 million people, with 274,000 hospitalizations and 12,469 deaths from it in the US alone. Doing the math tells me that there was one death for every 4,800 who contracted H1N1. Extrapolating those numbers from just the Swine flu means that millions of Americans could die from the coronavirus.
That’s why the country has been shut down. That’s why you can’t go to your grandchild’s birthday party, or out to a good restaurant, or even to church. And that’s why few people are working and factory floors are empty. With business being closed for business, they will not be making any money. With non-existent earnings, their price will also have to drop. Maybe by a lot.
Most financial advisers are counseling their clients to stay the course because the stock market will come back. After all, it always has. Other advisers that deal mostly or exclusively with fixed interest products may be saying to sell now and invest in their products to avoid any further erosion of your assets. Active managers have most likely already exited the stock market and are awaiting a signal to get back in, hopefully at a lower price.
If you don’t have a good financial adviser and feel that a steady hand on your long-term assets may be appropriate, you may not be able to go see one in person, but you can call one. 1-800-277-0025