Coronavirus Causes Gripping Headlines

Markets have dropped recently – although we are still within approximately 5% of all-time highs – as headlines shriek out notes of virus proliferation and human suffering.  It is understandable to be concerned. 

Fortunately – or actually unfortunately for the sake of mankind – there is a long track-record showing the path markets have coursed during previous disease scares.  As graphed, just over the last 20 years there have been 7 severe viral outbreaks that have impacted global markets. 

 

Coronavirus

 

The common thread of these previous outbreaks is their lack of sustained downward effect on markets.  By no means are we discounting the human suffering already involved or failing to closely monitor the situation moving forward.  Just those poor people alone trapped on those cruise ships seems like a story line ripped directly from a Stephen King horror story. 

Making Emotional Investment Decesions Based On Gripping Headlines disadvantageous for investment strategies.

 

This volatility exemplifies our long-term mandate to build and recommend portfolios that are "All-Weather" in nature, designed specifically to avoid emotional decision-making pertaining to investments.  Those who keep calm and carry on, and those who maintain a strategy based upon their unique needs, circumstances, and time-horizons instead of emotionally responding to the incessant noise coming at us, should continue to be rewarded.

Recognizing that we cannot control the markets, let's turn our attention to areas within our control. Areas that can add significant and objective value if optimized appropriately, like proper tax planning.

The tax man has nearly cometh, however, there is still time to make prudent investment decisions before April 15th.

 

The material and opinions provided in this document are meant for general illustration and/or informational purposes only and should not be construed as investment, tax, or legal advice for any individual. Although the information has been gathered from sources believed to be reliable, each reader must decide whether it is valid and applicable to his/her own unique circumstances. To determine which investment(s) may be appropriate for you, consult your financial adviser prior to investing. Any economic forecasts made in this commentary are merely opinion, and any referenced performance data is historical. As a result, neither is a guarantee of future results, as all investments involve risk. All referenced indices are not managed and may not be invested into directly. Investment advice offered through Resources Investment Advisors LLC, an SEC-registered investment adviser.

James Battmer on February 26th, 2020

Posted by James Battmer

James Battmer currently serves as Chief Investment Officer for Resources Investment Advisors. In his role, James is responsible for providing executive oversight of the firm’s investment strategy and execution, in addition to overseeing all institutional and high-net-worth client accounts. James has 20 years of experience in the industry, his experience lies in macroeconomic policy, fixed income management and equity selection. Prior to joining Resources Investment Advisors, James previously worked at UMB Bank and Morgan Stanley.

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