We thought we would interrupt your daily routine with an update on the current panic/crisis du jour. if you have taken our advice and are not watching the news, then you can stop reading here and continue to go about your lives.
If, however, you’re like most of us and find it nearly impossible to not engage with family and friends who are panic stricken and are trying to get you to act and feel like them, let’s take a moment to review where we are and how we got here.
Some months ago, a new strain of virus was discovered. It’s from the family of viruses that include everything from the common cold to more serious versions like SARS and MERS. For the vast majority of people who are stricken with this virus, symptoms range from none to common cold-like. Like most viruses, people with suppressed immune systems are affected worse, including some who will not survive the infection.
Most people in the world will not become infected, and nearly all that do will recover. But in what might otherwise be a slow news period, the media are collectively delighted to have a topic to scream about 24/7. With the added benefit of this being a presidential election year in the US, every new data point and policy move will be scrutinized, praised, criticized, and discussed incessantly with the required finger pointing..
In other news today, a trade war broke out between major energy producers, which sent the price of oil, gas, and other energy products plummeting. That means that they will make less money for some period of time! It also means you, and we, will keep more of our money as fuel prices decline. Additionally, it’s good news for the airlines whose passenger traffic and routes have been decreased due this temporary situation.
So, to recap, the world has become afflicted with a new strain of virus that will be harmful to a very small segment of the population and a nuisance to a somewhat larger number. We’re not unsympathetic and we feel for those people and their families. Meanwhile, closer to home, with reduced energy costsour money will go a bit further than before. Our economy may experience some temporary setbacks as governments quarantine segments of the population and the manufacturing of certain products. Of course, this is a temporary situation.
As of today, the market has quite suddenly experienced an 18% off sale very similar to the one it had in late fall of 2018. While we have no way of knowing how this one will end, you may recall that by the spring of 2019, that sale had ended. With the economy strong and so much of the worlds money already invested in fixed income, it’s hard to envision this sale lasting much longer than the last one.
Take a moment to review your mortgage rates as this is a great opportunity to refinance your home or possibly buy a new one. You may also want to sit back and await what could be great deals on travel and vacations later this year.
As always, keep things in perspective and avoid letting the catastrophists get under your skin!
Many in the media, as well as many politicians, try to derive benefit from getting people wound up and worried.
So, avoid the news and feel free to contact us with any questions you may have.
Michael Rogan & Associates