The Lowry Letter®

Week of 3/24/2020

We hope this week’s letter finds you safe and healthy. We are impressed by the way that many Americans have adjusted to the current situation and hope you are finding ways to care for your mental, physical, and spiritual health.

Alachua County is under a stay-at-home order, as are many areas. We remain open as an “essential business” and are available to answer questions and hold phone or video conferences using Zoom. Some of us are working remotely on occasion to manage other responsibilities that have come about or to limit contact according to guidelines.

A Little Housekeeping: For most of our clients we use model portfolios. These allow us to make adjustments efficiently. Occasionally that involves rebalancing accounts when the dollar amount in a holding strays too far from the target percentage. The major swing in the markets has created an opportunity for rebalancing and many of you will see those adjustments in coming weeks. Rebalancing allows us to sell high (from what has retained value) and buy low (into the assets that have fallen). This is one way to benefit from a major decline.

We think: the passage of the “Phase 3” Coronavirus Relief Bill does not signal the end of market volatility. Despite being in the middle of a 3-day upswing as we write this, it would not surprise us to see some bad news or other issue drive sentiment downward again, at least for a time. Still, we will take the relief with gratitude.

We found: out who will be receiving stimulus support checks from the Federal Government. You can calculate your own potential benefit, or lack, using this helpful calculator.

We read: Some good virus news… the nearly two-year-long Ebola outbreak in the DRC has ended. The last patient to be treated has survived!

We've been: wondering about the choice between helping the economy and saving lives. Unfortunately, the choice isn’t binary: there is a direct connection between the economy and health. Venezuela is a sad example where nearly a million children have been left behind by the economic collapse.

We recommend: quality time outdoors, and may have a new reason to enjoy the night sky. We might have a bright naked eye comet next month in the northern hemisphere- our first since 1997! Comet C/2019 Atlas Y4 is brightening really quickly, and by May might be one of the brightest things in the night sky

Q: What should I be doing right now? With everything going on, I feel a little out of sorts.

A: Step 1 : Take a deep breath. Even the IRS has recognized that these unusual times require relief. In addition to extending the deadline for tax filing and payment, individuals can make IRA and HSA contributions until 7/15/20 for the 2019 tax year .

Step 2 : Assess your household’s financial readiness. The markets will recover in time. In the near-term, will your income be reduced if physical distancing and quarantine continues? If so, it would make sense to scale back debt repayment and other obligations to the minimum amount.

Step 3 : If your income is stable and other goals remain consistent, are you able to increase your investment? This is a good opportunity for long-term investors. We do not recommend using debt for investment in the markets. If you can increase your rate of savings or have otherwise less-productive cash, now might be a good time to put it to work.

Step 4 : This step is appropriate at any time, but schedule a phone or video conference so that we can review your specific needs .

Advisory Services offered through Lowry Financial Advisors, Inc., a Registered Investment Adviser. Securities and additional advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Advisory services offered through Lowry Financial Advisors, Inc, are separate and unrelated to Commonwealth. Lowry Financial Advisors, Inc. is located at 12921 SW 1st Rd, Suite 215, Tioga, FL 32669. 352-333-7990

Lowry Financial Advisors is the only advisory firm that helps its clients reach their goals through The Achieving Simplicity® Experience™, providing clarity and confidence in their personal and financial lives.