Coronavirus: Are we out of the woods yet?


Michael we out of the woods or do we need to be preparing for the next time the market falls and we can't get our hair cut again well we made history with the last ball market I mean my markets had never gone up that many years we get the ten years that it never happened we got basically to eleven years in that hadn't happened and then things were looking really really great I'm gonna have to tell people what they're already aware of then we just got blindsided by coronavirus complementing and then suddenly we got into recession and it's already been shown as of February we're in a recession markets got down to the people saw this Dow was down around eighteen thousand five hundred all the way down from twenty nine thousand and some change that's a huge difference and a huge loss some people saw it in their portfolios and then as we heard American hearing about a president trump is talking about stimulus and and talk about the economy and talk about things coming back and what we saw was the start of a V. shaped recovery there's like different types of recoveries you could have a U. shaped recovery which is you know sort of you can measure to you looks like I missed and it goes down that sort of makes it big you at the bottom and and and comes up for recovery Alamance Christian V. obviously like avi right right I get that this is there a W. one as well there is a W. one right so right now we're in the middle of what looks like a V. because we got down to again around eighteen thousand five hundred and you know very very quickly we we've gotten back up to about twenty seven thousand I mean depending on the day Kristen right so seeing some volatility back and forth to the big question right now with things like elections with things like gosh for certain see some states where covert nineteen a certain spike back up now that we're in the summertime and people are out doing things obviously there's concerns about volatility in markets and what's going to happen will they shut things down again I I personally don't think that they will at the end of the day you can only stay shut down for so long before an economies to do what I kind of need to do people need to work people need to have money and the government honestly just can't write checks for ever so we do have to get things running but the concern moving forward over what might and whether or not this is gonna be a V. shape which is it it hits the bottom goes back up very very quickly and sort of keeps going versus a W. where it goes down goes up goes back down then goes back up that's the kind of thing that Christmas that frankly that's our job Callum of management to monitor and to manage for our clients as fiduciaries we're looking out for this we are active managers when it comes to portfolios it's not the hang in their prescription if you had to hang in their approach you would have written the V. all the way down and now you're reading it back up and you're and you're just hoping it gets back to almost thirty thousand just praying to get back to you even if you had a more active management approach to your portfolio hopefully your advisor would have stepped in somewhere along the lines and said Hey this doesn't look good we're gonna get more conservative in your portfolio and then guess what things look like they're gonna get better they get more aggressive in your portfolio with a W. you can imagine all right what is W. look like while I was up here than I went down then went back up and got even and I went back down again in a way back you know yeah hang in there you're just writing the whole W. out at the end of the W. you're basically where you started and how long did that W. take maybe it took a year you know maybe it took eighteen months one of the W. took twenty four months no matter what the period time is it's that period of time of effectively earning zero and having to deal with the just emotional fatigue of washing your portfolio bounce

Coming up next