We have just completed one of the most volatile market quarters in history. A DJIA that ended 2019 at 28,538 and by February 20 was reaching a new high over 29,348, A Cataclysmic event has caused the market to regress to a level not seen since 2015. The Corona-virus pandemic has caused more than the market to adjust but society to adjust as well. Who would have thought there would be an event causing people to shelter in their homes, furloughed from their jobs, and isolated from family and friends, all in a matter of weeks. While the events and hardships of the Pandemic are enormous and challenging, they have been met with the bravery and conviction that is the spirit of the American people. At times the Major media outlets have fanned the flames of panic, hysteria, and despair however they have also portrayed the inspirational stories of Bravery, Harmony, sacrifice, and the public spirit. I would have preferred to not see or hear some of the dramatizations and opinions that seemed to be politically motivated and aimed as an anti-established government rhetoric not seen since the 60's. However, now as then, I support the freedom of the press and the rights of their opinions, even when I disagree with some of them.
I served in the Navy from 1969 to 1978, during the traumatic episodes of protests against the Vietnam War, Through resignation of the President, to the Wars end. Those too were trying times. But not within the confines of our border. an unseen, mysterious battle, against and unknown enemy. A virus. As Fearful as it sounds today, we have battled others. HIV, Ebola, Bird Flu, H1N1, and I am sure there will be others. I believe good people will step up and help with this and all future battles. We are now a week into the second quarter and as of April 7th, the Market had rebounded almost 5000 points from it 's recent low. Much of that recovery has been attributed to the Financial rescue package to help people and the economy rebound when the Pandemic is under control. My advice has been to keep calm and move forward. There has been great direction from our medical professionals about social distancing. washing hands, sheltering in place, and wearing a mask. If we effectively and consistently use that advice there could be a dramatic end to the pandemic and a resurgence of the economy. People will go back to work, small businesses will reopen, and there will be a general sense of prosperity that will again become the norm.
I wish everyone the peace of mind and confidence that we will get through this. There are good people and leaders that will step up and make a difference in your life and in the lives of others. People helping people. It is what we have always done. In this season of the Easter, Passover, Sha'ban, and Dyngus Day, we celebrate spiritual holidays with special meaning to those who observe them. While we are "sheltering in Place" there are other whimsical days to commemorate and celebrate: National Tartan Day, National Pet Day, National Siblings Day, Jackie Robinson Day (I miss Baseball), National Beer Day, Bicycle day, Unicorn Day, Nat'l Grilled Cheese day, Nat'l Pretzel Day, Earth Day, and one of my Favorites, Arbor Day. I will plant a tree in observance this year.
There are many reasons to be cautious in these current times but not so fearful that it inhibits your from moving forward and accomplishing things that you may have put on the back burner for a while. While I am still working, I am taking an on line course. I video Chat with Grandchildren. Discover what a wonderful experience it is to hear a 4 year old carry a phone around and video chat to you for and hour and a half. Order food from a new place you haven't dined at yet. Read that book. Write letters to friends and family. Celebrate the people who are working to make things get better, to protect and treat those afflicted. We remain at your service and look forward to talking to you. Even if it is just to reassure you that things are getting better, Call us.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. The information is based on data gathered from what we believe are reliable sources. It is not guaranteed by Waddell & Reed, Inc. as to the accuracy and is not intended to be used as the basis for any investment decisions. The information presented does not constitute a solicitation for the purchase or sale of any security and is not a recommendation of any kind. Please consult your financial advisor before making financial decisions. The Dow Jones Industry Average (DJIA) is an unmanaged index and you cannot directly invest into an index. Past performance is not a guarantee of future results. (04/20)