posted on March 13th 2020 in Market Commentary with 0 Comments /

You’ve seen the news and we have, too. In fact, we have a careful eye on everything going down – and up. We’ve been hearing from many of you about your concerns. 

The market is clearly responding to new information as it becomes known, but the market is pricing in unknowns, too. As risk increases during a time of heightened uncertainty, so do the returns investors demand for bearing that risk, which pushes prices lower. Investing is based on the principle that prices are set to deliver positive future expected returns for holding investment assets.

We can’t tell you when things will turn or by how much, but our expectation is that bearing today’s risk will be compensated with positive expected returns. That’s been a lesson of past health crises, such as the Ebola and swine-flu outbreaks earlier this century, and of market disruptions, such as the global financial crisis of 2008-2009. Additionally, history has shown no reliable way to identify a market peak or bottom. These beliefs argue against making market moves based on fear or speculation, even as difficult and traumatic events transpire.

Let’s stay focused. What does focus look like? It’s about the long-range perspective. Volatility is a historical element of the market. But when we zoom out, we see a reminder of why we stay the course.

Continue Reading

Other articles filed under Market Commentary

The Morgan Report Q4 2020 Review – Lessons Learned

January 25, 2021 - 2020. Whew! I’m sure we’re all glad that’s over with, but as they say, beware what you ask for. Thankfully, my clients have stayed healthy and have mostly relegated to focusing on other areas of their lives like work, family,...
Continue Reading

The Morgan Report Q3 2020 Review – Get Your FAANG’s Out?

October 14, 2020 - Our experiences are not only, by definition, our lives; they shape our outlook on our future potential and everything around us. Recent negative experiences can hold us back from achieving those things we want to accomplish in life—sometimes temporarily, or...
Continue Reading

The Morgan Report Q2 2020 Review: Walking The Dog

July 17, 2020 - Why does it seem like the investment markets rarely do what you want or expect them to do? It’s like walking a dog. Imagine someone walking a straight line down the sidewalk and hoping the dog will follow the same...
Continue Reading

The Morgan Report 2020 Q1 Review : The Smell of Flowers Through A Mask

April 20, 2020 - “Wow.” When I pause, look out the window, and think about the current state of affairs, that’s the word that most easily slides off the tongue — and I know those of you I’ve spoken with recently share that sentiment....
Continue Reading

Some Rational Thoughts

March 13, 2020 - You've seen the news and we have, too. In fact, we have a careful eye on everything going down - and up. We've been hearing from many of you about your concerns.  The market is clearly responding to new information...
Continue Reading

Return to Blog Home