March 2020 Market Update
We hope this message finds you safe and healthy. As we continue to watch the developments on a national and global scale, we’d like to share how our firm has been adjusting and developing new ways to communicate and deliver an exceptional client experience
As such, the Partner team would like to share our most recent Market Update, written by Andy Stout, Allworth’s Chief Investment Officer. This is an example of the type of communication we have been sharing with our clients during this time of rapid change. We hope you can find it useful.
“Even as I write this month’s update from home, merely looking out the window, it’s easy to see and feel the effects of the coronavirus. Obviously, everyone is impacted.
Still, we owe it to ourselves and our loved ones to prepare for the future and focus on what’s ahead. Because even though it’s still relatively early in the pandemic, as difficult as it is to believe, this will pass.
Fortunately, since our founding in 1993, we have continued to believe that steady wins the day. In deference to that, we build (and have always built) investment and retirement plans to minimize periods of uncertainty and volatility, and to help protect the people who’ve placed their trust in us.
That said, we do expect the market to remain volatile in the near term (at least until there is some real economic clarity (likely, once new infection rates begin to decline)).
One factor that is easy to overlook is that the market is not the economy. This is crucial because stocks have historically recovered well before the economy.
To recount, since 1950, stocks have usually begun to climb five months before the end of a recession. In other words, it is important to remember, that when things look (and feel) their worst, markets have historically been a good investment.
“Be fearful when others are greedy, and greedy when others are fearful.” – Warren Buffett
When Allworth Financial’s Investment Committee convened this week, we of course focused on the impact of the coronavirus on the economy, the markets, and you.”