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How quickly things can change. The past few weeks have been unprecedented. The health crisis of COVID-19 has permeated our daily lives and will continue to do so for the foreseeable future. This abrupt transformation is creating drastic economic uncertainty. Investors are revaluing what the next 12-18 months look like for companies and their earnings. Most importantly of all, the epidemic is leading to fear for the health and well-being of our loved ones.
 
Our routines are topsy-turvy, monthly calendars are wiped clean, and daily habits are upended. We’re suddenly limited on where we can go and what we can do. The restrictions on our movement from place to place should serve as a reminder of the importance of friends and family. Yes, we will have to be patient as we collectively work to slow down the spread of this virus. But we will all be more grounded and aware of how good we have it when all is said and done.
 
Continued restrictions on the daily lives of American citizens will be necessary to slow the spread of COVID-19. The key factor now is how aggressive the government will be in applying stimulus packages to mitigate the economic fallout. The Federal Reserve has committed to lowering interest rates and providing liquidity but they cannot do it all alone. A sustained response by Congress and our federal government is going to be necessary to blunt the impact of this disease on our economy.
 
The economic uncertainty will, in our humble opinion, lead to a sharp recession this year. While a recession is always painful and difficult to manage for most anyone, it is a normal occurrence in any robust economic system. We have been very fortunate that almost eleven years have passed since our last recession. These economic downturns typically occur every seven years on average.
 
With all this rapid change comes fear and doubt about the future. We are collectively concerned about the health and well-being of our family members and communities. While these next few months will be trying times, these are also the times that underscore our sense of commitment to those we love and care for. In the end, this is where we will be at our very best. 
 
Please know that as a firm and personally, we are here. For our clients, business associates, friends, family members, and neighbors. If you are worrying about all that is going on, if you are worrying about how it will impact your finances, if you are worrying about what is coming around the corner, if you are just…well…worried, we are here to help in any way that we are able. Do not hesitate to let us know what we can do for you and your family.

Regards,

Matt and Gigi McKay

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