The Lowry Letter®

Week of 3/10/2020

A tumultuous period continues as uncertainty about COVID-19 rules the headlines. Our feelings remain the same as last week and we are happy to discuss this further with any of you.

The February 2020 market commentary is available at this li nk .

We learned: about a start-up that is trying to build a transportation network using electric vertical takeoff and landing aircraft. It will be interesting to see if they succeed.

We enjoyed: reading Joe Sr’s recollections of his mother, Joseph Helen Cunningham Lowry, in his book Thanks, Mom. He intends it to inspire all “to demonstrate respect, kindness, and gentility towards the mothers and women in our families."

We read: that SpaceX signed a deal with the U.S. space tourism company Space Adventures to launch up to four passengers on an orbital trip aboard a Crew Dragon space capsule. The mission would last up to five days and could launch as early as late 2021. Sounds like a unique (and very expensive) vacation idea!

We've been: following the Democratic primary. Tom Steyer spent more than $250 MILLION and did not win a single delegate. Michael Bloomberg spend $500 MILLION and won American Samoa. Is this a sign that money does not rule politics? Or more of a commentary on those specific candidates? Time will tell.

We love: LEGOs (maybe as much as the kids) and thought this was an interesting look at the history of LEGO pricing.

Q: What does the upcoming election mean for my investments ?

A: The first thing to remember is that elections have a short-term impact on the market that is eventually overcome by what actually gets enacted. Presidents also get too much credit (or blame) for economic conditions. Legislation in Congress will have effects many months and years after passage.

It is safe to assume that a Democratic president and Congress would increase taxes in a number of areas to fund new or expanded programs. A mixed-party government would provide a situation more like the present one, with a continuation of at least some current tax policies.

One proposal we are concerned about is a financial transactions tax. It has become a popular potential source of government funding because it would seem to be punishing wealth Wall Street firms. In this Vanguard study , we see that it would cost all of us indirectly in the form of reduced investment returns. This would have an impact on many Americans who rely on 401k plans, IRA’s, and other ways to invest for retirement .

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