COVID-19 Week Two Update

Hello everyone, we made the decision early last week to provide a weekly update through this rapidly evolving situation in order to give you some perspective from the investment side of things.

As we stated last week, we still highly recommend our clients stay invested through markets such as the one we are currently experiencing. Although each situation is different, past market drops such as the tech bubble of 2001-2002 and the financial crisis of 2007-2009 showed that the market can bottom out quite quickly and make a bounce off the lows in short order.

Two things became clear last week that are important to point out: the COVID-19 cases in the US will continue to rise over the next few weeks, and the US government, specifically the Fed and policy makers, made it clear that drastic measures would be taken to prop-up the US economy in light of the downturn we will be experiencing over the next few weeks due to social distancing.

It should be noted that the stock market is a predictor of the US economy, not a reflector of the current economic environment. As fiscal stimulus packages are passed, mortality rates are truly known, and a plan for recovery is anticipated, the markets should begin to recover.

Again, this is a time to stay with your original investment plan. If you have cash on the sidelines you have previously considered investing, now may prove to be a very good time to do just that. As always, please feel free to call us if we can be of assistance, and thank you for letting CrestPoint Wealth Management be your partner in your investment plans.

The CrestPoint Wealth Management Team