As we continue to monitor the progression of COVID-19 and the impact on global markets and economies, we thought it was important to provide you with some timely updates. Since mid-February, stock, and bond markets have experienced a significant amount of volatility, in a short period. At times like this, it is even more important to manage emotions and objectively evaluate the opportunities that lie ahead.
The past number of weeks has provided a rally in stock and bond prices from the recent lows in March. The rally in markets may have been unexpected since the health problems are not yet solved. However, history shows that markets, typically, recover before the problem that created the downturn is solved. The Federal Reserve has reacted swiftly and strongly to the economic pressures that are mounting. Additionally, they have committed to a policy to do whatever it takes to help the economy recover. Although the market rally over the last month has been welcomed, it is too soon to say we are out of the woods, so we remain cautiously optimistic.
We cannot ignore the hardship and tragic loss of life this crisis has brought to many families; however, we do believe this crisis is temporary and there is a light at the end of the tunnel. Ample fiscal and monetary response, low energy costs, and interest rates can help create pent-up demand for goods and services later this year.
We continue to be here to help you, so please feel free to reach out to us with any questions, investment-related or not.
WNY Asset Management