Coronavirus and the Markets

“When markets come back, you better be there.” –Paul Winkler

03-12-2020

Wow! What strange times we live in. Colleges and universities sending students home to finish classes online, NCAA basketball tournament to be played in empty arena’s, NBA suspends the season indefinitely, American workers working from home etc, etc. It looks and feels like the zombie apocalypse is upon us.

I want to share with you a video that a buddy of mine, Paul Winkler, put together called Coronavirus and the Markets. It’s a very good look at market history and how the markets have reacted when bad stuff happens ….and God knows we’ve been through a lot of bad stuff over the last century: The Race To Develop A Coronavirus Vaccine

Paul poses an interesting question….how many downturns have we recovered from? All of them.

Not easy stuff to go through but everyday we are getting closer to the end. The ability to remain calm while others are panicking is one of the keys to being a successful investor.

Remember for our part we are aggressively rebalancing accounts. Most of this is being done at the fund level so you don’t see this activity in your account. This is one of the tax advantages of using the fund of funds structure. By rebalancing we are keeping you risk levels at the appropriate levels. It also has the benefit of forcing us to sell what’s doing better (bonds) and buying what’s down (equities). In essence selling high and buying low. This will gives us the biggest bang for the buck when the markets do recover.

As Paul says at the end of his video….this too shall pass.