Party like it's 1983
We have a lot of great charts and graphics in this Periscope—perfect to share with a friend!
Happy earth day! Your US government stimulus checks are in the mail! Should we party like it's 1983?
Why 1983? Stocks are cheaper, relative to treasuries, than they have been since 1983. What this is telling you, is to hold on. And you’d be in good company. Most Americans are holding on during this crisis. (1)
And, we’re not alone. The IMF expects a quick recovery after Covid-19. That’s good news, because, in large part, equities in the rest of the world are still down a great deal more than the US equities. And, countries are opening up around the world. None of us know if it’s too early to go out, but we all know the danger of staying in. The crisis is putting a lot of pressure on government coffers. (3)
But Covid-19 is bad for travel. More of us plan to travel less internationally and domestically. We plan to not go to the movies or to the mall. (5)
Covid-19 is particularly bad for travel to southern Europe. However, no place in the world is immune from the decline in tourism. (6)
Each of these challenges presents new investment opportunities for our research teams. We look forward to talking with you further about what we’ve done, recently, in our accounts and what we see in the near future.
Most importantly, each of your portfolios is designed with you and your wealth manager for your unique situation. World events, as a general rule, don’t change our personal financial plans. Hopefully you’ve been able to save a few dollars by staying home over the past month. And should this quarantine continue, you'll likely save a few dollars more in the days ahead. This is a good time to plan, to talk, and to re-imagine the future after the panic as the new normal starts to take shape.