Matt Peak Newsletter-“Social Connection” Edition
An important part of my job as a financial advisor is to remind clients, especially during times of market volatility, to stick with their plan. I’ve been doing a lot of that lately, by phone and video due to “social distancing.”
It occurred to me, though, that all of this “social distancing” is happening at a time when all of us need healthy social connection more than ever. The launch of the Matt Peak Newsletter is my offering to you to share timely thoughts with an aim to support your family’s financial plan.
This week marks my 20th year as a financial advisor with Waddell & Reed. I’m a planner, not a short term economic forecaster. Beyond the technical aspects, my work is primarily about dealing with clients’ worries and concerns, and helping them make informed decisions. Here are my thoughts this week.
Resilience
It’s my view that even through these tough times, we should look at the resilience of our country to take on this natural disaster. The media doesn’t quite report it that way, so here’s my take on it.
In a scientifically detailed article, The Economist[1] talked about the 7 currently existing drugs that might be used to treat coronavirus and how the world’s scientists are working overtime getting them ready. Some are now in use. In other news this week, as part of a lightning fast rollout, 4 volunteers were given the first coronavirus vaccine in Seattle. [2] Sure, we still have problems, but can we all take a moment to be grateful and amazed that the beginning of the end of this health crisis might have taken place this week?
Resilience is also about companies quickly adapting. With most of us forced to stay home, Amazon can’t keep up with all the delivery orders and wants to add 100,000 new positions[3]. Apple closed its US stores, but kept the Chinese ones open, and will still pay workers[4]. That tells me they know this thing will end and people can’t stop buying iPhones. They don’t want to lose those employees when their stores fill up with people again.
As for the economy, we’ve quickly forgotten how much this U.S. economy had going for it as we first faced this natural disaster. We started the year with a projected 3.1% growth rate and 3.5% unemployment, according to First Trust Chief Economist Brian Wesbury. Furthermore, he argues that while health epidemics do hurt economies, they tend to come back strong as soon as they end.[5]
The coronavirus will come to an end, because Resilience abounds in this great country. In the meantime, my staff and I will still keep working hard for you (from home and from a safe social distance for now!)
[1] https://www.economist.com/briefing/2020/03/12/understanding-sars-cov-2-and-the-drugs-that-might-lessen-its-power
[2] https://www.businessinsider.com/photos-show-worlds-first-human-trial-of-potential-coronavirus-vaccine-2020-3
[3] https://www.npr.org/2020/03/16/816704442/amazon-to-hire-100-000-workers-to-meet-surge-in-demand
[4] https://www.theverge.com/2020/3/14/21179542/apple-closing-retail-stores-march-27-coronavirus
[5] https://www.ftportfolios.com/Blogs/EconBlog/2020/3/9/a-coronavirus-recession
Investing involves risk and the potential to lose principal. This information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed. This material is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Any opinions expressed are subject to change. (04/20)