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Mosaic Weekly Article 5/1/2020

May 01, 2020

I’ve learned a few things this week. We are all tired of each other, ready to move on and the stock market just doesn’t care! Being “locked up” is simply not in our nature. We are meant to be free. We are learning new things the hard way. Now, more than ever, we have learned to appreciate the simple things. Going to the grocery store, meeting a friend, stopping to get Chick-fil-A. I mean, when did this become so difficult? Like you, I’m feeling trapped and over it. Guess what? So is everyone else. We are reaching our limits and we are done with it. When will it be ok to just walk outside and feel normal? My guess is that we are getting closer to some sense of freedom. That freedom however will look much different today than it did 3 months ago. Will we go to a restaurant or movie theatre and feel comfortable?  Will we get on an airplane and feel safe? These are the types of questions we are all thinking about. There is no simple answer. But we will explore again. We will learn. We will get to the other side of what a new normal will be. We have to. It’s in our nature. We adapt!

The stock markets just posted the strongest month of growth and returns since 1987. Yet, many on Wall Street simply hate this rally and believe that more dire news is on the way. As we have stated ourselves over the last few weeks, the stock market has recovered significantly from the lows, but has it all come back too quickly? I tend to agree that we are not out of the woods just yet. We still don’t have a clear path on how the economy will fully reopen or when a vaccine will be made available. The Federal Reserve has done an incredibly job at keeping things afloat and releasing some of the pressure points along the way, but the reality is we need to get back to work and some sense of normalcy before a full recovery can begin. Clearly, we are not in control of this runaway train, but we will take what we can get and right now that is a stock market that is trading in a relatively close range. Either way, up or down from here, we feel very good about what we have accomplished over the last several weeks.

The investment world is adapting as well. New technologies are emerging and will thrive. Working from home, tele-medicine, tele-conferencing, eSignatures, delivery and supply-chains, Amazon and many other businesses are flourishing. The way we consume and view the world is evolving rapidly. This massive change will have ripple effects up and down the economy. Our role as your advisor is to adapt and change as well. We are engaged daily at looking into the “new” world as we see it. You may have noticed the trading we are doing and will continue to do. All of this is meant to position each of you, within your plan and journey, to be better suited for a positive outcome.

We are all adapting and while change can be scary at times, it is often unavoidable as is the case today. I say embrace it and make it work for you! Stay safe and enjoy the sunshine.


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