Broker Check

Update from Dan Kerrigan

March 30, 2020

Dear Friends,

If you have ever waited on a green light for what seemed like
hours, this is how last week felt regarding the largest Main Street
assistance program in the history of the United States. Typical
annual appropriations from Congress each year range between
$1.2-4 trillion, with expenditures of about $4.3 trillion. Many
Americans will receive $1,200 for each adult and $500 for their
dependent children in what is the result of a $2.2 trillion rescue
bill. Also included in the bill is direct relief to small businesses,
hospitals, Airlines, and unemployment benefits, etc. This was
accomplished not without much debate between Republicans and
Democrats over some of the additives and preservatives in the bill,
as well as language restrictions on corporate benefits.
On March 23rd, many of you will notice a large re-balance took
place in many of the accounts we shepherd over on your behalf.
So why would we make changes in the middle of a major
downturn? As an example, if you have a 50% stock to 50% bond
allocation in your portfolio and we see a dramatic downturn in
stocks, your model will have possibly adjusted to reflect a 40%
stock to 60% bond allocation. When this happens, we feel it is
best to return your allocation back to its original 50/50 make up as
we anticipate a future recovery. This should bolster your return on
the upswing. Many of you who are not in the distribution phase of
life are adding to your accounts and this should provide a nice
reward during the recovery. Many others I have spoken with are
content with the insured private pensions they own and tend to
focus on the income they receive each month.
In the United States we are testing more citizens than any other
nation. It occurred to me that while the numbers are thrust upon
us daily (cases vs. deaths) we truly don’t know how many of our
citizens have had, or currently have the virus. So, these
percentages are skewed. Any loss of life is tragic and I pray daily
for our nation and our leadership. Please continue to be steadfast
in your prevention of the spread as well as your compassion and
love for your families and others around you. Our team is here
and available daily to meet your needs.