We are all struggling to grasp the full impact of the COVID-19 epidemic as it affects communities around the globe. It is an uncertain situation and unfortunately, we have seen that uncertainty also reflected in the stock market these past couple weeks.
While the COVID-19 outbreak is a new experience for all of us, the stock market is reacting the way it always does to uncertainty. That is because there are a lot of investors that have not done the preparation that you have. Some investors don’t have a long-term plan or have built a portfolio that matches their risk tolerance for these situations. They are reacting to the swirl of never-ending news in the only way they know how. They are getting out at exactly the wrong time.
It is our hope that we have done our job and made you appreciate that the stock market acts in this manner with some regularity. It eventually bounces back and builds upon the gains it gave up. Sticking to the long-term investment plan that we created together will help ensure that you reap those gains and reach your financial goals after these trying times have passed.
No doubt COVID-19 is hitting some parts of our economy very hard. We probably will have a quarter or more of bad economic news. Expect the stock market to remain volatile during all of this. Up to now, the U.S. economy and U.S. consumers have been on firm footing with plenty of jobs for all. It is our hope that when the threat is passed, people will go back to traveling, enjoying concerts and sporting events, as well as supporting their local economies. Our expectation is that the stock market will eventually figure out that this event wasn’t the end of the world.
Please do what the health authorities recommend and stay safe. If you are uncomfortable coming to see us in the next few weeks, we understand. We are happy to discuss your financial situation on the phone at a time that works for you.
Boulay Financial Advisors, LLC Team