As April 2020 has come to an end, we’re quite sure no one ever wishes to see a similar month again.
The current double “black swan” events (the pandemic and major shocks in oil prices) continue to be driving factors of uncertainty and extreme volatility, both economically and medically. Although April may not have been the start to spring that many envisioned, we believe it is important to reflect on the positives. Some key highlights from April include the following: The Dow Jones and S&P 500 index saw their best month since 1987, many companies are working on a vaccine and promising new treatments, monumental monetary and fiscal stimuli, and some states are beginning to loosen restrictions while still attempting to follow protective and social distancing guidelines.
Although prolonged bad news including a record 20.5 million American jobs lost in April, a total shed of over 33.5 million jobs over the past seven weeks, historic unemployment rate at 14.7%, inflation, deflation, and increased infection rates may persist over the coming weeks and months, we must remain optimistic that the worst may be behind us. Unprecedented action has taken place, and human ingenuity will continue to thrive to defeat COVID-19. The pandemic will end or be contained, and economic recovery will, if it has not already, begin. Although the lengths of past recoveries have differed, historical data of the S&P 500 shows us that markets inevitably recover. Time and time again, economies and markets prove their resiliency.
Reassessing, but not abandoning, your long-term financial strategy is the key to financial success. A good financial plan leads to a properly structured, diversified investment portfolio. Although the circumstances may have changed over the past few months, and essentially no one was predicting a pandemic with such devastating health and financial consequences, we do believe that a good financial plan anticipated a “what if” the stock market declined dramatically. A significant amount of planning has gone into preparing for stock market shocks like this, and while there is no guarantee, time in the stock market tends to be sound long-term investment strategy. We remain confident that investment opportunities will arise, and when paired with your financial planning and goals, you should experience results that exceed bank saving rates i.e. a reward for enduring volatility and risk.
As we all begin to adjust to a new “normal”, Private Capital Group wants to assure you that our capabilities and commitment are unwavering as we work daily remotely. Our talented staff and advisors combined with first class technology are keys to a successful outcome. We will continue to work tirelessly to ensure that your unique financial needs are met. Please contact us to schedule a remote access meeting using technology and know-how to assess your situation. As Warren Buffett recently stated, “We’ve faced tougher problems, and the American miracle, the American magic, has always prevailed…Never bet against America”.
Be safe and healthy!