Coronavirus Market Update

Our markets continue to be volatile this week with the double whammy of falling oil prices and the virus.

Computer Trading: the one day up, one day down is directly associated with computer trading.  It continues to heighten market volatility both on good days and bad.

Quarantine: For those of us not in the medical field the thought of quarantines are stunning.  In medical circles quarantines have been a standard tool for mitigating medical risk for a long time.

Media:  Our media is focused on the negative trends which helps them sell advertising, their ultimate job.

Recession:  We may be heading into a recession. We won’t know for a couple months.

This is NOT Different:  this feels different because we haven’t had a recession and major medical virus simultaneously.  The reality is recessions are always different.  The flash crash of 1987 was completely different from the dotcom of 2001, which was completely different from the Great recession of 2007.  There was a different trigger each time.  The real difference is we have a lot more money now than we did last time.

What to do:

  • Put your phone down. Being knowledgeable is certainly important, but the news negativity can be depressing
  • Exercise: Go outside and walk around the block.  Download a yoga or 7 minute workout app on your phone.  Follow with a stretching class on your TV.  Boost your endorphins and mood.
  • Socialization: Meet with small groups of healthy friends and family.
  • CALL US:
    • Discuss market anxieties
    • Food delivery: we have survival kits ready to go if you get sick, containing food, fruit, towels, soup and goodies. 

Additional Details:

1. Oil Prices: as Saudi Arabia produces less and less of the worlds oil, they have become desperate to reduce global oil supplies over the past several years. With the recent reduction in oil demand because of the virus, Saudi Arabia is very motivated to reduce other countries oil supplies.  To do this they are increasing their oil by production by 1,000,000 daily trying to drive prices down and create oil bankruptcies.  So, we are experiencing a mixed blessing of dramatically lower oil prices/gas prices for our cars, while American oil companies’ stocks have fallen more 50% and pulling our stock market down with it.

2.Infection Rates: The most promising trend is the stabilization of virus in china.  As you can see with the chart below, new cases in China have leveled off.  If we can follow the same curve in America, we will have a tough 6 – 7 weeks, then things potentially improve.

3. Know the Symptoms:

3. How to Protect Yourself: 

Once again, we emphasize your holistic financial plan incorporates your goals and is crafted over the long term. It is a roadmap to your financial goals. It incorporates inevitable market declines and keeps us from making rash decisions when markets turn volatile.

We recognize these are trying times.  No one likes uncertainty, especially as it relates to our health and the health of our loved ones.

Uncertainty drains our most precious resource: happiness. Turn off the news, get outside, and turn to what brings you peace. We are confident this too shall pass, and we will be better for it. If you have any thoughts, questions, or concerns, reach out to me. That’s what I’m here for. My door is always open.

 

WE WILL GET THOUGH THIS.  LET US DO THE WORRYING FOR YOU.

208-343-2001  |  kelly.wood@woodtarver.com

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