We have some important information to share in this week’s Lowry Letter®. Many times we have expressed the importance of focusing on the things that we can control. This means how much we spend, save, and (for most of us) how long we work. It means building an appropriate reserve and managing debt.
It also means maintaining an investment mix that is appropriate for your goals. This is why we spend time assessing your risk tolerance and capacity, so that your investments are a good match for
who you are.
We don’t know how far the market will fall, but we do know it will recover. Brad McMillan (our favorite market observer)
has a helpful analysis
. The whole thing is worth reading, but here is an excerpt:
When the pandemic is contained, however, the fact that markets follow fundamentals is also a reason to be cheerful. Bear markets are typically quite short when the economic fundamentals remain solid. If the pandemic is quickly brought under control, a solid economy could drive a quick recovery. We have had only two bear markets in the absence of a recession, in 1962 and 1987. In both cases, while the downturn was sharp (as we have just experienced), the recovery was relatively quick. So far, the economic news says that we are not headed for a recession—and if that is the case, the bear may not be here to stay.
If the pandemic lasts longer, and the economy is more deeply affected, remaining committed to an investment program keyed to your goals and specific situation is still the best approach, rather than reacting to the latest event-driven news. As always, we are happy to discuss this with you.
COVID-19 and Lowry Financial Advisors
We take the health and well-being of our team seriously. We have always strongly encouraged staff to stay/work from home if they are not feeling well. Of course, at this time we also recommend caution if they have recently been in contact with someone who is not feeling well, or believe they have likely been exposed to COVID-19, to prevent the spreading of any illness to others and to maintain a safe work environment.
We are proud to have a sound infrastructure and robust technology in place to efficiently and effectively deliver client services remotely if we are unable to report to our office.
We foresee no issues with maintaining existing service levels and operations if confronted more directly with COVID-19. We continue to monitor all updates related to COVID-19.
We are happy to set up a video conference with any of our clients in the event a meeting at the office is of any concern.
