Our New Normal
By now you have probably felt the impact of Coronavirus on your daily life. The virus itself continues to take its toll on families and healthcare systems all over the world, let alone its current economic impacts which have led us to break nearly every unemployment record imaginable. It’s not all despair though; on the upside we have a very significant stimulus package, Congress is working together for the first time in recent memory, and the number of daily new cases in Europe (which seems to be a few weeks ahead of us) appears to be steadily slowing.
My crystal ball continues to malfunction, and I cannot tell you with any certainty, nor can anyone else out there, when things will get better again. (If I may make one prediction though, it’s that we’re likely to have a new baby boom at the start of 2021!) What I can do though is share the lessons of all past financial crises: that once the dust settles, we will all still need something to eat, something to do, and a means to get from A to B. As long as that remains true then there will be an economy in place to help each us to achieve those ends. In the meantime, we’ll stick to our plan and continue working to achieve our long-term goals.
But what about stock markets?
The market is rather unique in its ability to absorb and respond to a myriad of data points and information all at once. Some people think we’re going to have a prolonged economic downturn. Others think this will be relatively short lived, and we’ll be back to normal in time for July 4th or Labor Day, let alone Thanksgiving. The truth, as it often does, is likely somewhere between these two extremes. So long as that truth remains murky, the market will continue to swerve and adjust, and we’ll remain on this bouncy ride. That’s OK.
We can all use a COVID-19 break!
A book I read ages ago, Susan Maushart’s The Winter of Our Disconnect[1], sticks out in my mind as somewhat prescient for our current plight. The book is about a family who unplugs for several months, the opposite of what many of us are dealing with today, but it’s in the way they adjust to their new normal and ultimately adopt that experience to their lives going forward that has remained with me since reading it. As an example, when the family does reengage with their devices, one rule they created is to not bring their media to their food, or vice versa. Now that we are so glued to our screens, the idea of clinging to some non-screen time seems even more important now than it did a few short months ago.
Finally, if you can use a smile this video[2] is usually good for some contagious laughter.
If you have any questions about your accounts or just want to chat through the current situation, please don’t hesitate to reach out. In the meantime, now more than ever…
Live Long and Prosper,
Dan Tobias, CFP®
Please note: The above is a copy of the 2020 Q1 Passport Wealth Management client newsletter attached to quarterly statements from August 2020. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful.
[1] https://www.penguinrandomhouse.com/books/308759/the-winter-of-our-disconnect-by-susan-maushart/
[2] https://www.youtube.com/watch?v=y3yRv5Jg5TI
About the Author: Dan Tobias
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