We have entered a new market cycle as we bid adieu to the bull market that began in March of 2009.
This is the year of the coronavirus and the beginning of a new era of a social distancing economy.
This is a serious time as we all strive to stay healthy amid the spread of the coronavirus. Much as we are all trying to adapt to the new normal of social distancing, the stock market is trying to calibrate to the new normal of a social distancing economy.
There is more disruption on the horizon in the near term. This disruption, we believe, will subside once we have a vaccine for the coronavirus and are able to return to some semblance of normalcy. To once again be able to go to the corner coffee shop and enjoy a convivial cup of coffee with a colleague or a friend, to socialize with friends and family, and for kids to return to a normal school schedule.
Innovation will be key for companies to be profitable as we enter this new market cycle. This is one of the motivations for us as investors to be in the stock and bond markets in the first place. Knowing we have historically been able to count on the expertise of our money managers to pick these innovative companies for our portfolios perhaps can give us the fortitude to withstand this event-driven bear market.
Stocks are valued based on forward-looking earnings. For many industries, earnings are looking a bit bleak for the short-term. For other industries, the earnings picture is looking a bit brighter. Short-term, we have a lot of economic issues that will be headline-making news. For example, we anticipate the unemployment rate to hit highs we have not seen in decades. However, once we get back to an economy that is firing on all cylinders, we anticipate the stock market to return to less volatile times and be more orderly.
I have every confidence that we have very smart people at the helm in our financial institutions. This bear market came roaring in like a lion this month. Following winter, the long-awaited season of spring arrives. A bull market, historically speaking, will be the next market cycle to follow the bear market we entered last week.
Let’s be in touch as we work through the current trends in the marketplace.
Wishing you a healthful and abundant spring of 2020.
Sincerely,
We have entered a new market cycle as we bid adieu to the bull market that began in March of 2009.
This is the year of the coronavirus and the beginning of a new era of a social distancing economy.
This is a serious time as we all strive to stay healthy amid the spread of the coronavirus. Much as we are all trying to adapt to the new normal of social distancing, the stock market is trying to calibrate to the new normal of a social distancing economy.
There is more disruption on the horizon in the near term. This disruption, we believe, will subside once we have a vaccine for the coronavirus and are able to return to some semblance of normalcy. To once again be able to go to the corner coffee shop and enjoy a convivial cup of coffee with a colleague or a friend, to socialize with friends and family, and for kids to return to a normal school schedule.
Innovation will be key for companies to be profitable as we enter this new market cycle. This is one of the motivations for us as investors to be in the stock and bond markets in the first place. Knowing we have historically been able to count on the expertise of our money managers to pick these innovative companies for our portfolios perhaps can give us the fortitude to withstand this event-driven bear market.
Stocks are valued based on forward-looking earnings. For many industries, earnings are looking a bit bleak for the short-term. For other industries, the earnings picture is looking a bit brighter. Short-term, we have a lot of economic issues that will be headline-making news. For example, we anticipate the unemployment rate to hit highs we have not seen in decades. However, once we get back to an economy that is firing on all cylinders, we anticipate the stock market to return to less volatile times and be more orderly.
I have every confidence that we have very smart people at the helm in our financial institutions. This bear market came roaring in like a lion this month. Following winter, the long-awaited season of spring arrives. A bull market, historically speaking, will be the next market cycle to follow the bear market we entered last week.
Let’s be in touch as we work through the current trends in the marketplace.
Wishing you a healthful and abundant spring of 2020.
Sincerely,