Quotes About Covid-19

In this week’s letter I want to thank everyone for all their warm wishes and thoughtful prayers making sure we are all healthy and safe.

As you are aware, the Woloshin Investment Management team and staff are dedicated, working from home, and 100% committed to making sure you know, “We Are Here For You!”

There are many people in the news today prognosticating their thoughts as to what one might expect in the future. A few notable business moguls have made several comments, predictions, and recommendations as to the fate of the stock market, jobs, and our economy.

Marc Cuban of Shark Tank and owner of the Dallas Mavericks reports on the US economy during this pandemic:

“America is going to go from 1.0 to 2.0. We are a nation of business owners and entrepreneurs and we can rapidly bring back the American economy. The United States should stop doing business in China and bring back manufacturing to our borders so that they will create massive jobs for Americans. America needs to invest in technology which will lead to more expansion of our economy and create more jobs.”

Larry Fink, CEO of the world’s largest asset manager, BlackRock manages $7.4 trillion for clients around the world and has the industry’s biggest ETF franchise. “The furious decline in stock markets this month have created an opportunity for some clients to move more into equities”, Fink said. He cautioned that it is “impossible” to know if markets have bottomed and that heavily indebted companies will struggle in the weeks ahead. He also told shareholders that the economy will recover from the corona-virus pandemic, and when it does, there will be “tremendous opportunities” to be had.

“In my 44 years in finance, I have never experienced anything like this,” Fink says, “As dramatic as this has been, I do believe that the economy will recover steadily, in part because this situation lacks many of the obstacles to recovery of a typical financial crisis.”

Lastly, Larry Kudlow, National Economic Council Director, reported Friday, “Our economy, our businesses, and our jobs, will not take years to recover from this virus. The difficulties from this pandemic are temporary. Our job, in government, is to help our citizens financially. We support them. We need to help businesses stay viable in order for them to snap back and provide jobs. We will do whatever the federal government needs to do to help the American people get back on their feet.”

There are three basic categories that will shape the corona-virus impact on the markets, businesses, and jobs. The number one area is scientific and medical data, interacting with the specifics of people getting sick and recovering. New studies, new medical treatments are happening and vaccines are being developed more timely than in history.

The second basic category is our nation’s Fiscal policy. Fiscal policy adjusts to spending levels, programs, and tax laws to influence the economy. The recently passed $2 trillion stimulus package is a driver to help individuals and businesses survive their lost job and business closings.

Lastly, the third basic category is monetary policy. This happens through the Central Bank, the Federal Reserve, influencing interest rates and our money supply. Lower interest rates make borrowing a lot cheaper and affordable. Increasing the money supply helps prevent the tightening of the economy causing horrible episodes we experienced in the 2007/2008 economic crisis.

Lots of complexities, issues, and uncertainties. Rest assured, we will be hard at work following the experts, independently doing our own research, forming our opinions, and prudently managing your investment savings.

We are here for you!

Warmest Regards,

Your friends at Woloshin Investment Management