The Prudent Retiree - What's Going On Part III

I’ve not listened to Marvin Gaye this much in a long time. The market is dropping because of the fear and uncertainty about the spread and economic impact of the Coronavirus.  

Let’s state the obvious—this is not good. No one knows yet how widespread it will get. All the experts are just offering educated guesses. Most likely, we will find a solution and the outcome won’t match our worst fears.  

As I write, the market is now down less than 5% in 2020. Almost all of you are down less. The rapid drop makes it seem even worse. This sort of rapid drop is not unprecedented. We had a decline like this in 2018 because of concerns about trade and interest rate hikes. We had a similar drop in 2016 because of a rapid decline in the price of oil. In both instances, we had a relatively quick recovery because the economy was fundamentally sound.  

Our economy is strong now. Of course, any drop can turn into a 2008 style market crash. We don’t believe that is the case here. We believe low inflation and low interest rates will sustain the economy. This market drop has nothing to do with Republicans or Democrats. Please don’t listen to the blathering of shameless politicians.  

We are concerned and continuously evaluating the market. We will change our thoughts as the situation warrants. We believe it is prudent to maintain your current allocation. As always, give us a call to discuss any concerns.  

Here at Horseman Group, we strive to provide you with the highest possible level of customer service. Feel free to reach us at 314.692.7842 with any questions regarding your investments, risk management, or retirement.   

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Horseman Group – 3 CityPlace Drive - Suite 290 – St. Louis, MO 63141 – 314.692.7842 www.horsemangroup.com  

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