I am writing this Newsletter at the end of a day (5/27/20) when the market (DJIA) increased by over 2%. These days are confidence-building, as the numbers for the day point to the market moving higher again and to a market that will not give in to fear and pessimism. No promises that it cannot go down again, but proof that no one ever knows enough to say “This time it’s different.”
MAY 2020 Newsletter
I am writing this Newsletter at the end of a day (5/27/20) when the market (DJIA) increased by over 2%. These days are confidence-building, as the numbers for the day point to the market moving higher again and to a market that will not give in to fear and pessimism. No promises that it cannot go down again, but proof that no one ever knows enough to say “This time it’s different.”
I am amazed at the daily reasoning of the media. “The market goes up today because it recognizes we are close to having a vaccine to the virus.” Now it is “slipping” because the US and China are not getting close to an agreement. How can anyone believe that daily sum of interesting hypotheses is anything more than “interesting?”
We will be debating the pros and cons of the shutdown for years to come – another proof that the stock market goes up even though people disagree on the causes of its problems.
What a surprise to learn that most of our medical equipment and supplies are produced overseas. That seems unwise now that we look back…or now that the information is being given out widely. And the Chinese have been stealing our intellectual property for years and influencing our colleges? And this has gone on for many years and been ignored even though many understood it existed? Doesn’t that mean some people have earned a lot of money knowing that the rest of us are being hurt? Aren’t our representatives and senators supposed to protect us from these sorts of things happening?
But still we “love” the market and find it one of the proven ways to create wealth. As unloving as certain pieces of the market are, where else can we common people put in a little at a time and, if we are patient, receive results where we can begin to pull out regularly while continuing to see that investment grow?
Your accounts are not back to their pre-crisis levels (February 19th) yet, but they have recovered significantly from the March 23rd market low. The market may go back down again; we won’t know the Bear Market is over until it has been over for a while, but it is still down enough to provide a good opportunity to buy.
We have held many telephone conversations or reviews with clients and are happy to speak with you about any questions. And if you would like to come into the office, we’d welcome you. If mask wearing is important to you, just let us know so we can act accordingly.
Louise Googins, Author, Principal
Karl Kuelthau, Principal
Michael Googins, Administrator
Kim Rankin, Accountant
Carson Bieber, Associate