This Is Temporary
This is temporary…
We will go back to dining out…
We will go back to our respective workplaces…
Our kids will return to school…
We will go back to enjoying live music…
The stock market will stabilize…
It’s going to take time but normalcy will return. However, the infection and death count related to COVID-19 will rapidly increase in the short run. The headlines will be alarming, but try not to panic. Please stay informed by accessing reliable science-based sources. I suggest you follow the guidelines from the Center for Disease Control:
Managing Anxiety and Stress - CDC
Call your parents, uncles, aunts, neighbors and urge them to follow the guidelines for older folks, even if they feel fine. Check in on them every day.
Economic activity except for food shopping, binge watching, and video gaming, is going to grind to a halt. We are going to sacrifice the economy for the safety of millions of Americans, rightfully so. We need to separate the sick from the healthy asap. It worked in China, where the healthcare infrastructure is not as robust as ours. If we adopt social distancing, as recommended by scientists, we will get through this quicker than most believe at the moment. It is very easy to get all dystopian…don’t; betting on the end of the world has always been a sucker’s gamble, and a losing one.
We are working hard to protect your portfolio. Thankfully, we are well diversified with bonds, gold, and cash in portfolios. We warned clients that the virus outbreak was being underestimated in January (Panic and Pandemics). And we took steps to get more defensive. But we are also taking advantage of lower stock prices due to panicked investors. It wasn’t easy buying Apple and Google in the 2008 crash. The best (stock market) opportunities arise in crashes and crisis, not when the market is at an all-time high. In hindsight, this will be an opportunity for those who remain calm.
Here are a few positive points to consider:
All 42 Apple stores in China have reopened... I don’t believe Apple would put employees and customers at risk if they believed there was a high probability of infection. If China can stop the spread of infection in 4-6 weeks, I believe we will too…and likely quicker than most believe.
Gilead Sciences drug remdesivir shows promise in battling COVID-19... we’ve owned Gilead shares for more than a year and recently bought more.
The Federal Reserve Bank is taking dramatic steps to help the economy... all the steps they will ultimately take will dwarf what they did in 2008 to save the financial system. Congress is going to write massive checks too.
Insider buying spikes, which means CEO’s and corporate executives believe shares of their companies are trading at bargain prices (apparently, we’re not the only ones buying)
The trump presidency is likely over, in 9 months we will likely have a new president that believes in science.
We are in challenging times, but this will not last forever...
By no means do I minimize the negative impact on all of us. But please take a moment to consider how fortunate we are to be in our own homes with loving families, food, clean water and wifi. I worry about the millions who can’t afford to be out of work. All the money my family saves from not eating out will go to help those less fortunate. When this is over we will hit all of our favorite dining spots and leave extra large gratuities for the staff. The car wash guys are getting xmas style tips. The food & beer vendors at the next several concerts we attend are getting 100% tips, at least. It takes very little for us to be heroes, as opposed to victims.
Take a break from cable news and social media and enjoy this: David Bowie - Heroes (Live Aid 1985)
The world came together to help those in Africa in 1985…we will rise up again, together, and get past this.
It is not what you have, but who you have…I am very grateful for the trust and confidence you have placed in us.
Sending love to you and yours.
Thank you!
-randy and everyone at Hamilton Wealth
The opinions expressed in this communication are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed in this communication is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
Hamilton Wealth, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Hamilton Wealth, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Hamilton Wealth, LLC unless a client service agreement is in place.