Congress has passed The CARES Act. This stimulus package brings relief to the American people during an unprecedented time when portions of the economy have been brought to a screeching halt. We will outline some of the very basics that have emerged from this bill. Like the SECURE Act, it is a massive bill with plenty of interpretation still to trickle out.
I am sure you have noticed; the market is down. People are nervous or fearful and those feelings are not unwarranted. Even though we have lived through the Avian Flu - H5N1 and the Swine Flu – H1N1 outbreaks, this feels a little different. I obviously can’t tell you when we will get a vaccine or when the market will make a comeback.
The global stock markets have dropped the last 2 days in response of fears about the spread of the coronavirus. As the reports of deaths due to the coronavirus expand beyond China, health officials in most countries, including the US, are developing containment and treatment plans. Pharmaceutical companies around the globe are developing coronavirus drugs and vaccines.
Outbreaks of epidemics typically affect the value of your portfolio. In the past it has always been in the short-term. The fear of the coronavirus has caused equities to sell off from their recent all-time highs. There is no reason to expect this outbreak to behave any differently. This sell-off is ok.