“Don’t let the cure be worse than the problem,” a thoughtful, and weary President Trump explained last night to America in a tone that was right on the money for the situation at hand.
President Trump explained how we all need to do our part and that America was not built to be shut down and out of business. We need to flatten this curve and be open for business (my emphasis) because that’s what America does best. Let’s lead by example.
Now that America is in day nine of self-isolation we’ve learned quite a bit about our politicians and how many are looking at this as an “opportunity.” I’ve seen enough of NY Gov. Cuomo and being talked to like a kindergarten student. I’m more nervous because he clearly thinks he knows what’s best for us.
Then you have RI Gov. Raimondo’s executive order last week extending background checks for firearms from seven days to 30-days. The second she had a chance to take your guns, or make it harder for you to get one, she did it. So much for your constitution.
Let’s not forget how Raimondo and her administration were completely caught off guard last year when Newport and surrounding towns lost their natural gas heat on the coldest days of the year. Now we’re seeing the other side of that.
My days have been filled speaking with thoughtful customers and investors like you. With my customers, we spent a lot of time constructing portfolios well before this virus pandemic took over the world. Portfolios were crafted in a thoughtful and calm manner.
Unfortunately, we’re seeing how investors are dealing without a plan. Kristin Tate writes in The Hill about how many Americans are unprepared even for a few months out of work:
How long could you sustain your household if you were to stop earning income? If you are like most Americans, the answer is not for long. Only 40 percent of Americans can afford an unexpected $1,000 expense with their savings. In fact, nearly 80 percent of workers are living paycheck to paycheck. It is no surprise that the probability of an economic recession brought on by the coronavirus pandemic caused many to worry.
In major cities such as Boston, New York, Los Angeles, and San Francisco, restaurants and businesses have been ordered to close. For many hourly workers, this means no paychecks in the coming weeks. Almost one in five Americans have already lost their jobs or have reduced hours. At the same time, salaried workers are concerned about job security, as mass layoffs at numerous companies loom. While the situation is understandably stressful for every person affected, it serves as a sobering reminder that Americans must learn to live within their means and regularly save money.
The need for all Americans to be able to sustain themselves for at least a few months on savings is accentuated during a time of crisis. This means planning ahead when times are good. Financial planners suggest saving at least 20 percent of take home income, while spending at most 30 percent on discretionary items. Yet too many workers still fail to think twice about spending entire paychecks for things they want but do not need.
As investors scramble to cash looking to feel good, we’re looking and seeing plenty of mistakes being made. Do not let emotions get the better of you. Don’t let your emotions be worse than the cure. America was built on business. We will be back in business because that’s what America does.
Read my entire series, Coronavirus Infects Stock Market here.
