We hope this week’s Weekly Market Review finds you safe and well. The market is soaring on this Monday with the Dow Jones Industrial Index currently up more than 1200 points as I type this. There is a good chance that the gains occurring today in the market will not be sustained in the short-term as the wild yo-yo swings of prices continue, but days like this should encourage investors that eventually a sustained recovery will occur and when it does, it will likely be swift.
Emergency Accounts – Financial Planners and self-help financial personalities such as Suze Orman and Dave Ramsey have long recommended that the cornerstone of a good financial plan is a sufficient emergency account containing three to six months of necessary expenses. In unprecedented times like this, when we are living through the unthinkable, solid financial planning can be the difference between good and bad outcomes. While I’ve always recommended an emergency account, like most of us, I’m learning a lot through this situation, and will make the emergency account a more significant emphasis as we try to help people with financial planning.
Good deed opportunity – My house is very busy with the three children bouncing off the walls. Even though I’ve continued to work a demanding schedule, with everything under the sun being cancelled, we have had a lot more family time which we have really enjoyed. My heart hurts though for those that are living alone right now. I know we are all connected via technology, but it is hard to give someone a hug through the phone. I encourage you to be creative in ways to reach out to those who are enduring this all by themselves.
AWESOME SLIDES – Our friends at Legg Mason have developed a powerful slide deck that we wanted to share with you. The slides take you through a time-line of troubled market situations dating back 50 years, then beginning on slide 12, the incredible recoveries that happened when the markets got going again. Slide 17 has some time-tested bullet point advice we 100% agree with. Please take a few minutes and study these slides. As bad as things look and feel right now, these slides will give you confidence in what the days ahead will eventually bring.
Inside the WMR are updates on the oil industry, the PPP loan program from the SBA, unemployment claims, and a stat regarding how many folks did not have that sufficient emergency account. As always, we hope you find the WMR both interesting and informative.
Trevor N. Coe, CFP®