Crazy Week in the Stock Market

“Life is 10% what happens to you and 90% how you react to it.”

Charles R. Swindoll

Another crazy roller coaster week in the stock market. Monday the market dropped a to ten year low followed by three spectacular up days – creating a three day world record.

This next week creates quite a bit of uncertainty because the anticipation of good news might not present itself. Unfortunately, the number of people affected by this virus will be rising and this will be the majority of the media headlines. Additionally, the number of individuals not working and applying for unemployment will dramatically increase.

The majority of our clients know, and now realize, their portfolios have been built to withstand the downward pressures of bad stock markets like this one.

Your management team, Woloshin Investment Management (WIM), prudently steered your portfolios, in October of 2019,to allocations utilizing a defensive structure consisting of cash, fixed income, and a smaller amount of equities, thus reducing losses during this horrific time of decline. We are actively managing your portfolios with the cash we had set safely aside creating new opportunities by investing in high quality companies that have lost 30%, 40% and even 50% of their values.

The difficulties and sacrifices in our world, the economy, and the stock market have not gone away. People are getting sick, hardworking Americans are losing their jobs, and the majority of us are hunkering down at home and have changed all sorts of social, family, and travel plans.

My wife Donna and I changed our plans to visit dear friends in South Florida. While on the phone with American Airlines, attempting to change our flight schedule without getting dinged with multiple charges, I jokingly said to the airline agent, “I thought I bought a ticket to paradise!” She responded a matterof-factly, “Sorry honey, but paradise is closed right now.”

Well, for today, that about explains our situation. Times will get better, most people will recover, we all will go back to work and our economy will improve while our stock market will rebound. It just will take some time.

We are dedicated to helping our clients invest their hard earned savings and prepare the income they will need in retirement.

We are here for you!

Warmest Regards,

Your friends at Woloshin Investment Management