Your Financial Plan & COVID-19

Posted By T. Lee Sherbakoff, CPA/PFS, CFP® on Apr 15, 2020


Your Financial Plan and COVID-19

From Lee Sherbakoff, The Nalls Sherbakoff Group, LLC.

Dear friends,

We all vividly recall the global financial crisis of 2008. The economy was quickly contracting, several financial institutions required bailouts, layoffs abounded, and the stock market plunged. 

But we weren’t grappling with fear tied to a health crisis then. We could go to a movie, eat at a restaurant, travel, or enjoy a live sports event. The roots of today’s crisis are different, and now we are in the midst of both an economic and health crisis. Activities outside the home have been greatly curtailed.

It’s unsettling for everyone.

The speed of the decline in stocks has been swift. Since the February 19 peak, the S&P 500 Index shed 34%, plummeting to its most recent low on March 23. Since last month’s low, the S&P 500 Index rallied to 2,846 or 27% through April 14. Technically, a 20% rally from the market’s bottom constitutes a new bull market–technically. As of April 14, the S&P 500 Index was a modest 19% below its February 19 peak. The recovery has been cautiously encouraging.

The pace of the sell-off can be traced to the enormous amount of uncertainty tied to shutting down major portions of the economy. What will its ultimate impact be? The brightest minds continue to debate this. We strenuously counsel against trying to time the market. Many analysts are experts at their craft, but they cannot predict the future. There are too many unknown variables.

Your own individually crafted financial plan remains our guide, as the plan is rooted in the precept that the U.S. and global economy expands over time…and with it, so do equities.

We don’t know what might happen next year, but the long-term historical trend has been favorable. Let’s continue to keep our long-term financial goals in mind, even during these trying times.

Best,

The Nalls Sherbakoff Group, LLC

DISCLOSURES: The information provided in this letter is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as investment, legal, or tax advice. The Nalls Sherbakoff Group, LLC makes no warranties with regard to the information or results obtained by third parties and its use and disclaim any liability arising out of, or reliance on the information. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of The Nalls Sherbakoff Group, LLC. Past performance does not guarantee future results.