“… all of us here at Legacy are cautiously optimistic that we are through the worst of this dark tunnel, both pandemic wise and economic wise.

We are still here and monitoring markets and investments. We are being vigilant in trying to navigate the waters ahead so that we can get you to your goals.

We hope that you will call us or email us any concerns or needs that you have. Also, please know that we are thankful and honored to be walking through this strange time with each of you and we appreciate the support and confidence that you have in us.”

“The hardest arithmetic to master is that which enables us to count our blessings.” – Eric Hoffer

So here we are at the end of April. In Mesa County, the hair salons and barbershops can open this Friday (May 1st). And I’m guessing that if you’re a stylist or barber, you can be busy 24/7 for quite a while if you want to be. You might recall that I, along with the other male partners in the office (Jeff and Dan), put our razors on a “shelter in place” order until the hair salons and barbershops reopened. We were having a “who’s the scroungiest” contest. Well, a winner has been announced and it’s Jeff. I was a close second but my lack of hair, on the top of my head, cost me the award. Now, I’m putting my razor on a “safer in hand” status and disposing of all this white hair on my face as early as tomorrow morning.

The scroungy guys!

While our facial and head hair was expanding, by any measurement, our economy was not (Surprised?). The first-quarter gross domestic product was -4.8%. That’s the largest drop since late 2008. Personal consumption for the first quarter was -7.6% (Another surprise, right?). So far, since the shutdown, over 22 million people have filed for unemployment, and expectations are for another 3 million to file by the end of this week.1 On a more positive note, liquor sales are up, and in those states with legalized marijuana, the green weed is raising lots of green dollars. Hmmmm…

As my whiskers have been growing out, the stock market has been recovering some of the devastation of March. The Dow Jones Industrial Average is back in the 24,000 range and the volatility has quieted down some. Investors tend to look ahead and move their dollars in the direction they believe the economy will go. In February and March, investors saw nothing but black clouds and Great Depression on the economic horizon and pulled their money into safe havens dropping the Dow Jones Industrial Average almost 35%. Now in April, the black clouds are starting to lift. The economic news is awful, but investors don’t expect it to continue, as parts of the economy begin to open back up.

The truth is that it’s too early and there are too many unknowns to put much of a bet on how quick and how complete of an economic recovery we will have. Even in the midst of reopening some things, we are still seeing other things being canceled (Country Jam and JUCO for example).

How many and how quickly will all these unemployed people go back to work? Will consumer spending pick up as sectors of the economy open up? The east and west coasts make up a lot of our economic activity and those areas are the hardest hit and will be the last to open things up. What effect will that have?

As I was on my morning walk with the dog, I looked around and realized that in the midst of all the hardship and discomfort this pandemic has and is causing, Spring has still come. The valley has gone from brown to green and pink and yellow and white. There’s still a bit of a chill in the morning air but the afternoon temperatures are gloriously warm. Spring has always been a time of optimism for me and all of us here at Legacy are cautiously optimistic that we are through the worst of this dark tunnel, both pandemic wise and economic wise.

We are still here and monitoring markets and investments. We are being vigilant in trying to navigate the waters ahead so that we can get you to your goals.

We hope that you will call us or email us any concerns or needs that you have. Also, please know that we are thankful and honored to be walking through this strange time with each of you and we appreciate the support and confidence that you have in us.

“The hardest arithmetic to master is that which enables us to count our blessings.” – Eric Hoffer

Sincerely,

Mike Berry, CFP®
Linda Eden-Wallace, CFP®
Dan Funderburk, CFP®, CKA®
Jeff Funderburk, CFP®

1https://finance.yahoo.com/news/gdp-1q-2020-us-economic-activity-coronavirus-pandemic-155756514.html

These are the opinions of Mike Berry and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.

Mike Berry is a Registered Representative offering securities through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Wealth Management, LLC and Cambridge are not affiliated. Cambridge does not offer tax advice.

Copyright ©2020 Mike Berry. All Rights Reserved. Commercial copying, duplication or reproduction is prohibited.