First, let me apologize for the delay between posts. Truth be told, me and my girlfriend ended up moving ourselves across town by ourselves, with no help on the packing or unpacking side. Our help cancelled on us the morning we were making the move because of the Coronavirus, so it was me and her versus 4 bed rooms and a basement. 13 hours later, our last box made it into the garage of the new house, and we were exhausted.
It’s wasn’t just carrying the furniture that was tough. Not having any of our friends and family to help on either side to organize and decorate really does underline how much socializing impacts our lives. We have already met almost all of our neighbors (from a safe distance since they are all out walking) and quickly identifying who has little kids that go to school with my daughter for future play dates. Hopefully sooner than later.
While away, and with very limited access to the internet while moving and until the cable was installed, I saw the market put on a slight late-quarter rally, but still finished as one of the worst quarters in U.S Stock market history. Not surprised based on the outbreak of Coronavirus virtually crippling the global economy; I was a little surprised the quarter wasn’t even worse. Some potentially positive news about Coronavirus treatments gave the market some brief confidence, but that seems to have leveled off lately.
The FED and congress are throwing everything it can at it so far, with little success of calming investors fears that it can buy it’s way out of this. They have begun to use the word ‘Trillion’ as the new normal, which it very well may be. Nobody has any idea how long this will go, and how much it would cost, but the 2 trillion that has been approved will be just the tip of the iceberg. Turn on the money printers.
Helicopter money is coming. It won’t be enough, and doesn’t put money in the hands of all the people that need it, but there still is going to be a lot of it. Other programs, such as small business loans that do not have to be paid back if used to pay employees allows small businesses to keep their payroll running while people are at home. Also, a few mortgage and auto loan companies have already begun to offer their borrowers a deferment of up to 90 days on their payments, and I expect others will follow suit. They have to keep blood flowing in the system, so give people money. It really is their only choice. The longer this goes, the more ways they will come up with to give cash to spenders to keep the system alive.
If you are worried about the debt getting out of control, the value of your money being printed away by the enormous stimulus coming this country’s way, or about the health of the US Economy and how they will impact your portfolio, feel free to give me a call. There are investments that can possibly help protect against those scenarios.
Phillip Connors Investment Adviser (303) 770-3030 Phillip@valuefin.com http://www.valuefinancialadvisers.com
Seeking Value 