With the market down again this morning, enough to cause the circuit breakers to be employed and halt trading, this extended period of volatility arising substantially from the COVID-19 (corona) virus fear (and an over extended market fueled by years-long low global interest rates) is beginning to test even the most seasoned investors.
For what it is worth, this does not scare me nearly as much as the 2008-2009 stock market (all asset classes, actually) plunge. I was working as the Nevada Regional Managing Director of the Wells Fargo Private Bank at that time. We were literally getting calls from multi-hundred millionaires looking to move their assets from other firms because at that time, Wells Fargo was considered one of the strongest banks in the world. I was truly concerned at that time we could tip over into a global depression…something beyond a very, very bad recession, which it turned out to be.
In the instant case, as global reaction to the virus is clearly going to impair corporate revenue and earning
s, and ultimately some companies will fail as a result of this, I believe our ability to manage and ultimately overcome this virus in a reasonable period will put a stop to the hemorrhaging of the market.
For any of you who have been invested in the market since 2009, you experienced one of the greatest bull market runs on record. I do not want to get into specifics on solutions, but for any of you who have realized some of these gains (even with the recent draw-
down, you are still equivalent to the gains you experienced up through early 2019…), there are solutions to take some or all of your gains off of the table and lock them in with growth or income as a benefit, and your downside protected.
Dave & Drew