Positive Letter

 

THIS TIME IS DIFFERENT!

I seemed to hear this a lot lately “This time is different. I can’t imagine how this will turn out.”  So many unknowns.  I can’t say all will be well soon, but I can share some history with you that may put some of this into perspective.  Many down times are referred to as “Black Swan” which refers to a metaphor that describes an event that comes as a surprise, and has no precedent, completely different and uniquely terrible

Black Swan of 1987:  On October 19, 1987, the stock market collapsed. The Dow Jones plunged an astonishing 22.6%, the biggest one-day percentage loss in history. Even bigger than the 1929 stock market crash, just before the Great Depression. It has been referred to as Black Monday ever since.

Black Swan of 9/11/2001: The terrorist attack shook the foundation of our society to the core.  The market ceased to function and was closed 9/11 to 9/17.  This was unprecedented.  The world changed that day and will never go back the way it was.  But we survived and thrived.

Black Swan of 2008-2009: Pandemic financial crisis. The entire economy and credit system stopped functioning and the S & P was down 57%. September 17 the economy almost collapsed – Lehman’s bankruptcy, auto makers going out of business, this list was endless. On November 20, 2008 the Dow Jones had a record breaking drop to 7,552, and hit a market low of 6,649 on March 6, 2009. We thought we would never see an end to that financial crisis.

Here we area again…..“This time is different, I can’t imagine how this will turn out!?”   Will things ever be the same?  I believe this will, because it is who we are as a nation! As I am typing this note the Dow Jones is at 21,285.  Its low since February 20 has been 18,213. Let’s keep in perspective that the low in 2008 was 7752 and the January 24, 2020 the market closed at 29,989. 

It feels gloomy and very dark.  This is a history making tragedy, but there is power in prayer, so stay positive and trust knowing that this too shall pass. Keep gratitude and love within your focus! We want you to know that we appreciate you, and you are always in our thoughts.

With the strange times that we are in, we are meeting with clients to review portfolios and be as much of service to each of you as possible. Please feel free to call and talk about your concerns, or call to schedule an appointment in the office or a “Zoom” video call!

In Friendship,

Kay Freitag

Financial Executive