When we rang in the New Year almost four months ago, I doubt anyone could have predicted the current situation. As we get used to things like picking up groceries curbside and keeping six feet between us and the next person, I think it’s important to address the elephant in the room.
When will things go back to “normal?”
It’s essential to recognize that our new normal probably won’t look the same as the old normal. That’s true for every crisis that’s touched our country (see the changes made since September 11, 2001, and the Great Recession of 2008-09). But I believe we can count on the fundamentals providing us with a path forward.
Those fundamentals include people wanting to work, wanting to build businesses, and wanting to provide for their families. All these activities lead to the exchange of goods and services between individuals and companies. This activity creates the necessary value to justify investment for today and into the future. That investment builds a foundation for a diverse and robust economy.
When you talk to any of us at Strathmore, you won’t hear us panic about recent events or the decline in the financial markets. Instead, we’ll focus on a) your financial goals, b) our long-term plan for the achievement of your goals, and c) your portfolio as the long-term funding for that plan.
It’s this long-term approach that allows us to remain calm and optimistic about the future. We understand that each crisis that preceded the coronavirus pandemic got resolved, economic activity began growing again, and the value of a globally diversified portfolio resumed its long-term upward trend.
That’s why we believe it’s so critical to understand the fundamentals. While the world around us will change, those fundamentals will be our guide. We are a nation that will come back from the extremes of today to shape our new normal into something better.
The same holds true for our markets and investments. This, too, shall pass.
We don’t know the day, the week, or even the month. But we do know that the fundamentals haven’t failed us before, and we have every reason to believe they’ll pull us through to the other side.
Just like before, we’re here to listen and to answer your questions. We welcome all questions and value any opportunity to speak with our clients. Stay safe and my best to you and your family during a difficult time.