Undoubtedly, you have heard recent news about the unprecedented actions being taken in response to the Coronavirus outbreak.
At PFG, we support the decisions being taken by our country’s leaders to curb and control the outbreak. We believe that though the mortality rate of Covid 19 may not be high, the loss of even one life—especially if it is the life of someone you love, is too many. If you have lost someone you love to the virus, we grieve with you and hope that you find comfort in those you love who are still with you and peace in the happy memories you have of your loved one.
However, market volatility, news headlines, and reported government responses to this pandemic can be unsettling, alarming, and confusing. The management at Pence Financial Group has years of experience in navigating confusing market turbulence.
Here’s what we know:
- It is true that this virus is highly contagious but, compared to other viruses we’ve faced in the past, including the “common flu”, its mortality rate is relatively low, primarily affecting the elderly, smokers, and people with compromised immune or respiratory systems. If you are one of these people, we urge you to be extra cautious.
- Twenty percent of the coronavirus cases are severe and the recovery rate is about 21 to 40 days. The total mortality rate is 3.7% – 15% of that are those over 80 years of age. Again, if you or someone you love falls into this category, please take the necessary precautions.
From a portfolio management standpoint: Our investment team maintained actions or have taken actions to limit risk ahead of this and have continued to make minor adjustment during this volatile time. However, large wholesale exits to the market as a knee jerk reaction to what is an event of limited duration is just that: a knee-jerk reaction.
There are no underlying structural or economic reasons that should cause our economy to fold upon itself. Government and Federal Reserve assistance will have longer positive effects on the economy than the current disruption of the pandemic.
We have navigated rough waters before and while we are not clairvoyant or perfect, we will attend to the most relevant and reliable facts available and recognize that this difficulty is likely to be short-term and return to stability is in process.
Your investment time horizon is much longer than the period of this out break. Short term turbulence should not get in the way of the long-term view. This is a very large pothole in the road not a permanent road closure.
Please know that we are addressing portfolio and investment issues daily on your behalf. Our investment team is diligently monitoring and assessing data.
Please, take care of yourself and those you love and know that we’ll take care of the wealth management side aimed to Empower your purpose!
The Pence Management Team