We are working on a private client webinar program that we hope to announce by late March. Please pay attention to upcoming communications with details on the date and time.
As of Tuesday, March 24, we have headlines that have ranged between inconsolable fear that we are experiencing a Depression or Recession and euphoria that it’s a ‘once in a lifetime investment opportunity.” We don’t believe in spreading rumors, fear nor making decisions based on headlines. The truth is that no one knows yet, what the long-term economic impact of the Coronavirus will be. It’s too early to predict and it may be 30-60 days before we really have clarity and facts.
Depression? There doesn’t seem to be an economic definition for a depression, other than a severe recession. Some may argue that the “Great Recession” of 2007-2009 was a depression, and by comparison to the late 1920’s, you may agree.
Recession? A recession is defined as a broad-based decline in economic activity, observed by reduction in employment, personal income, business sales and industrial production. Based on that definition, I think we can all agree that we are experiencing at least SOME of these factors which started in February and may not peak until late spring or early summer.
Because statistical reports are based on what’s happened in the past, recessions are sometimes here and gone before we know it. Once the headline statistics are public, it sometimes creates a second wave of fear. Based on what’s actually occurring, though, it appears the U.S. economy has already entered into a recession. In the days and weeks to come, the statistical reports will confirm the status.
Things are still unfolding in the U.S. In other countries, it appears things are beginning to improve and there are some countries that simply are not reporting anything.
Some suggestions for how you might take action.
We are now all working remotely.
Things will eventually turn around and get better. We are all here to help you work your plan and make wise personal financial decisions. If you have an urgent need, you can reach us on our cell phones.
Opinions expressed in these updates are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Investing involves risk and investors may incur a profit or a loss. Past performance doesn’t guarantee future results.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Investing involves risk and investors may incur a profit or a loss. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability.
Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.