Broker Check

Update from Dan Kerrigan

March 19, 2020
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Dear Friends,


Earlier today President Trump, Treasury Secretary Mnuchin, and
the head of the FDA presented (via a press conference) some
timely updates. It appears that while a vaccine is not available
today, there have been a number of private sector healthcare
companies testing existing vaccines unrelated to COVID-19 that
may be helpful with the virus. All resources have been brought to
bear to stymie COVID-19, and the resources of our private sector
along with the full support of the US Government should
accelerate the process. It would be wise for all of us to adhere to
the requests of our countries leadership as we look to find favor in
what I took for granted not long ago, true freedom to go and do.
Secretary Mnuchin shared earlier today that the White House is
working to send most adult Americans $1,000 within 3 weeks to
offset the pandemic, a pandemic which has forced a grinding halt
to many businesses. In the new proposal, children would receive
$500, so a family of four would receive $3,000, if it passes. This
is all part of the broader $1 trillion proposed plan by the White
House earlier this week. There is talk (undecided) that the income
cutoffs for those benefits would be $150,000 for couples and
$75,000 for individuals. If the crisis is still ongoing in six weeks,
another round of checks will be delivered.
Social distancing has caused a significant slow down in consumer
spending, which translates to extreme pent-up demand at a later
date. So how much later? Two days ago China opened up their
first movie theater, and while that should not be a direct indicator,
they certainly are getting closer to the other side of this
pandemic. Much concern circles around exiting social distancing
too soon so as to not reignite the virus. If you believe the United
States’s best companies will be here 6 months from now, with the
full support of US Government, then I'm offering Hope instead of
Fear. Hope is the only thing stronger than fear. I was asked
recently, “So what's good?” I tried to remain serious in my
response as I have watched beautiful balance sheets of
companies I've followed my whole career get slashed. It is not
sustainable, and we will rebound in dramatic fashion.