If you have been watching our video and podcast series this year, then you know that we have paid particular attention to many economic metrics as we have observed the closure of the United States economy, it’s re-opening, and looking to those metrics for direction as to market exposure and investment opportunities.

In this article, we are going to discuss the paradox with the letter “V”.  In April, the widely held opinion was that we would not experience a V-shaped recovery in either the economy or the market.

It seems that since February, all of our attention has been focused on everything from the economic impact of COVID19, and market volatility, to the physical, mental and emotional implications of quarantining and social distancing.  It’s truly been a unique year.

During times such as these however, we can lose sight of some basic financial fundamentals, and I thought I would angle today’s article toward some of these areas that may be impacting many of you reading this.

From the standpoint of risk management, now would be a good time for an insurance review. 

The COVID19 pandemic continues to impact the lives of millions of people across the globe. Since the 23rd of March however, the markets have begun to recover, but now it seems that worries over a second wave of the disease are weighing on market sentiment again.

As of Monday, the 6th of July, the Dow Jones Industrial Average is higher by over 43% from the low established in March.

As you may have heard, the CARES Act was signed into law on Friday, the 27th of March. There are substantial provisions of benefit to both individuals and small businesses within the Act, designed to help bridge the economic impact gap caused by our efforts to flatten the COVID19 curve.

I want to thank each of you for receiving these emails, and spending time with us over the phone as we reach out to you as quickly as we can, and as you call us.  We’re working long hours to live up to the commitment that we’ve made to you, and will continue to do so.

Several of you have reached out to us, asking for the conference call credentials again.  We are hosting these calls on a daily basis for the foreseeable future at 3:30pm Central Time each day. 

As Seen in The Trussville Tribune:

https://www.trussvilletribune.com/2020/03/19/coronavirus-covid19-and-market-volatility/

Coronavirus (COVID19) and Market Volatility

As you’re aware, global markets are in a state of fluctuation.  Markets don’t like shocks, and we’ve had two of them in recent months.  China was late telling the world about Coronavirus.  As it was spreading, we didn’t know how virulent it might be, the incubation period, the fatality rate, or if conventional methods would be sufficient to treat disease. 

Create a Financial Plan

Starting the financial planning process early can be of tremendous benefit for managing debt, developing effective budgeting habits, and establishing goal-oriented investment plans.

Clearly, Coronavirus has been front and center in the media lately, and worries about the spread of the disease are having an impact on markets. Remember, markets are discounting mechanisms. Prior to Coronavirus, global markets had priced into themselves, assumptions about global economic growth.

Now, markets are re-pricing the risk that previous growth assumptions may be negatively impacted by the Coronavirus. Ok, that’s reasonable. Sometimes, markets can be over zealous in the re-pricing of risk. Sometimes, it can assume an extinction level event.

Keystone Financial Group, announces their newest team member, Brandon Guttery, as a financial advisor and representative of Ameritas Investment Company, LLC (AIC), Member FINRA/SIPC.  As of January 31, 2020, Brandon Guttery represents Ameritas Investment Company, LLC, through Keystone Financial Group in Trussville, and Nowlin & Associates in Homewood.

Brandon is a graduate from The University of Alabama where he successfully completed a dual major curriculum in Finance and Economics, and earning a Bachelor of Science in Business and Commerce Administration.

Brandon is the son of David R.

This article briefly looks at the SECURE Act and what you should keep in mind as you plan for retirement.

https://www.youtube.com/watch?v=fPXXOkdNRJQ

Click the video for additional footage on the Secure Act and why it matters to you!

What Parts of the SECURE ACT Relate to Financial Planning?

The key provisions of the act that relate to personal financial planning are:

The maximum age for traditional IRA contributions was repealed.