Big moves were made on Sunday, the Federal Reserve cut
interest rates to 0 and also launched a $700 billion quantitative
easing program. Translation, we have enough liquidity to operate
our banks and meet small business owners needs during this
period of quarantining. This is not the recession of 2008. Markets
will react in a back and forth saw like fashion for a short period of
time (months). Social distancing has begun and will be obvious
over the next couple weeks; once that concludes and we all
realize this will have been a fearful but rather short scare
(relatively speaking) an abundance of demand will be waiting on
the other end. We could see a snap back to the upside that will
shock many investors and for those who sat on the sidelines it will
be too late to participate in a robust recovery.
If you come across a bear in the woods we are told to stand and
not retreat as this reaction has lead to many ferocious attacks.
Instead show a strong sign of confidence and stand your ground,
as time permits you can slowly back away. While unlikely that
many of us will face this scenario in the woods it most certainly
presents itself in the financial markets every 6 years or so. If you
would like to discuss your allocation or the insured strategies
many of our seasoned clients own we are happy to
accommodate. Stay safe, be wise, and don't get ensnared by the
news and the negative emotions it can foster. Focus on the care
of your families and others, we will overcome.