Investment markets continued lower this week, as fear around Coronavirus weighed on equity prices. Today, Joe Barry sat down for the third market update covering the unrest. The full podcast can be found at the bottom of this email, but the executive summary of his thoughts are below:
- Since last week, the level of stress and fear within the market has intensified.
- Every industry and class of debt got liquidated this week. This was very unusual.
- We've talked about companies that live paycheck-to-paycheck as a risk during a market downturn, but it's becoming clear that American families living paycheck-to-paycheck are the real concern right now.
- One encouraging thing in all of this: China is returning to "business as usual" and we can use China's experience as a guide to determine how long this might last in the United States.
- Interest rates are likely to stay low for the foreseeable future so, as we mentioned last week, dividend-paying stocks will continue to be a key asset in the weeks and months ahead.
- There is no way to know when the bottom will be, it's our job to build the best possible portfolio to get through this difficult period and to set the stage for many years to come.
- Your team at Barry is operating at full strength and ready to assist you and your family as needed.
If you have questions about your portfolio or our thoughts on the markets, please call your team at 888-992-8601.