The Questions COVID Creates


March 17, 2020

My Dear Reader,

I don’t know whether or not you got the memo, but apparently the world is ending. The Fed recently cut bond rates down to just about zero and the stock market will continue to implode as businesses are shut down. Puerto Rico completely shut down all nonessential services, and today France and most of Europe followed suit. There are many angles to look at this virus from, one is the apparent over reaction, considering the fact that it is just a flu and not the second coming of the Black Death. It’s also interesting to note that whether or not you think it’s a big deal typically aligns with your political beliefs. who would have thought that politicizing every crisis would lead to a situation like this?

But the point I want to make to you today is simply to reiterate how volatile not only the stock market is but most traditional financial planning is. What if someone was set to retire at the end of this month, and the stock market suddenly drops 10,000 points and counting? Will they have to go back to work? Will they have to settle for less income in retirement? And if they do, can that plan even be considered a success? It’s times like this that remind me by doing what I do for a living is so important. But tomorrow, I’ll have something even better for you, something that goes a little deeper on The political nature of this crisis.

To your creation and potential,
Kevin Prendiville