Paul L. Moffat discusses the media coverage of the coronavirus and how not to react during this phase of the economic and emotional cycle.
Hello welcome to Arista Market Update.
Does the media and the current events have you in the blues? I understand, and I feel your pain.
Can I share with you some articles?
Here’s the Review Journal that says “Unprecedented Measures,” Today’s paper The Wall Street Journal “The Fed Slashes Rates and the Slump Looms,” Barron’s Magazine newspaper this morning “The Crisis Playbook.” Poor Benjamin Franklin! The media has gone and put a coronavirus mask over him. Then the Las Vegas Sun today, very smart person that tells us where it all originated from and has other people and all of us worried if you read into it too much.
This all feeds into our emotions. Our emotions we balance and control on a daily basis. May I share with you a chart that will help put things in perspective?
As you can see with this chart, things start with optimism. In 2019, the markets were positive, and there were positive rate of returns, and we were thrilled and happy. Then we started to have a virus outbreak, and there was a concern. There was nervousness. There was anxiety. There was fear. Following these cycles of emotions, and as we know we’re down in the fear and the anxiety portion of this cycle, it’s really, really important to not react during this phase of the cycle.
And watching this and reading this stuff causes you to make poor decisions at the wrong time. It creates a financial coronavirus victim inside your account. Please give us a call to discuss.
Hop you’re well. Have a great day.