My Diary:  Day 331 of the Quarantine

My Diary:  Day 331 of the Quarantine

It’s day 331 of the Corona-virus Quarantine. I just traded my last shot of whisky for four sheets of toilet paper. One of the last rolls on the west coast I am told. Fed Chairman Powell lowered interest rates for the 73rd time this morning in an effort to spur the economy. Interest rates stand at -67%. Netflix and Hulu are a distant memory as State Run television began showing reruns of “I Love Lucy” and “I Dream of Jeannie” in an effort to convince millennial’s that they are new shows. It seems to be working. I didn’t even recognize myself in the mirror this morning. Where did all this gray come from? I sure do miss my hairdresser.

 In all seriousness, things do seem to be settling down and the shock and awe are over. The Dow’s drop of 36% in just a few weeks is unprecedented. However, it is somewhat understood when you consider that the stock market is typically a barometer of what the economy will look like 6-12 months out. It’s not designed to react to short term events. That’s why it went haywire.  The market can handle bad news; it just doesn’t handle uncertainty very well.

The media is increasing the pain exponentially. I am extremely pleased that our portfolios are performing very well throughout this crises, especially compared to the market averages, but it’s still painful. However, it’s hard to find positives with the 24 news cycle. Closing the gyms, restaurants, schools and other establishments certainly isn’t helping.

We are finally getting some good news. China has reported no new cases for several days now and the Virus’s spread appears to be under control. Getting our head around the problem has, in fact, been the problem.

Now that uncertainty is waning, stocks will start to focus on what is certain, that the economy is going to rebound hard and fast. In fact, it should be at full strength in just a few months.

Once Congress announces a fiscal stimulus package (hopefully today), confidence will return with a vengeance. The enormous monetary and fiscal stimulus coming is astronomical and new stock market highs by year end is a very likely scenario. It’s the time to add to your portfolios if possible. I’ve never been more bullish on America.

This time is so interesting that I feel like I should write a book about it. When in human history has the entire world been united in dealing with a crisis?

On the financial side it gets even better. Never in history has a leading nation been able to start fresh, rebuilding from the ashes. That’s what we’re doing with this quarantine. Imagine how efficiently the economy will be running once we are back to full capacity, which should not be more than just a few months. Maybe it takes something like this to fully switch over to the gig economy.

What I do know is that The United States of America is the greatest nation to ever occupy this globe. Now that we are unified, our recovery will be incredibly powerful and I’m confident the pain of the last few weeks will be a distant memory.

Thank you for your trust, confidence and friendship. I am working diligently during these trying times and we will continue to be very tactically active with portfolios to do whatever is necessary. I am in the office with a skeleton staff, and I will remain until the Sherriff drags me out. (Then I’ll work from home 😊).

If you have any questions or need me in any way do not hesitate to call.

 “Invest for need, not for greed”

Sincerely -Keith

916-925-8900

Smart Money Newsletter

Written By: Keith Springer

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