Broker Check


| March 02, 2020
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I recently sent two emails out, one to clients and one to non-clients, in regards to the Coronavirus and its' relation to the stock markets. After some thought, I thought it would be beneficial to give others access to my thoughts also. The following is the body of the email I sent to FCU (Financial Concepts Unlimited, LLC) clients.

The stock markets' been going insane recently, and while you
haven't shown concern by calling and panicking, I am sure you've
given it thought and I'm sure you are concerned to some extent.

I want you to know I am watching what is going on very closely.
There's no humanly way possible to foretell what is the absolute
right thing to do at the absolute correct time, but I do strive to do
that for you, and I do concern myself with that very much so.
So I'm concerned too. In part, I'm concerned about the various
markets and whether or not the panic will just take on a life of it's
own, but mostly, I'm concerned about your feelings about this,
your stress levels, and being honest with you while at the same
time, making sure you know I take you, and the job I do for you
very seriously.

And I say all this because I do not feel panicked over what is
happening at the moment. My only true concern is that the
public's psychology, the public's panic, will get out of hand, even
while the threat from the Coronavirus, and all that it entails as far
as our economy is concerned, is being alleviated.

I'm no expert on the Coronavirus. But I do have a lot of expertise
in what I do for a living, and here's how I think they're going to
end up relating to each other...

Our, and the world's various economies, are relatively strong.
Right now, there are approximately 20 vaccines that are in the
works that show potential promise. At least one is ready for
human trial.

The Coronavirus, and the various governmental
attempts to contain it, are the threat at the moment, even
though attempting to contain it, obviously, is the correct thing to
do. In the meantime, If it is contained, I believe a solution will be
found. I'm not sure if a solution will be found and that's how they'll
contain it, or they'll find a way to contain it and then a solution will
be found, but in some form, one of those is certainly a possibility.

Coronavirus is a larger umbrella term that contains a host of
viruses. We've found vaccines to all of them except, so far, the
current threat going around, COVID-19. COVID-19 stands for
Coronavirus Disease 2019. The others under the Coronavirus
umbrella are, Middle East Respiratory Syndrome (MERS), Severe
Acute Respiratory Syndrome (SARS), and I believe good ol'
Influenza (The Flu). Again, I'm not a viral expert here, so I may be
off a bit, but I don't think I am. The point is we've found vaccines
for the others, and I have faith someone will find a workable
vaccine for COVID-19 also. And it looks like we have about 20
possibilities so far.

Another possibility of what could happen economically, is that
COVID-19 is NOT contained before they find a solution (one way
or the other, I think they'll find a vaccine). Oddly, this scenario
would probably contain the best economic result, because once
they determine it can't be contained, commerce, shipping and
travel may actually go back to a more normal state while they seek
a vaccine. Not that I WANT it to not be contained, but that is one
of the possibilities, and it may end up resulting in a normalization
of the markets to a certain extent.

In the end though.... as I mentioned before.... I will always be
honest with you. I don't want to just say something to make you
feel better, I want to tell you the truth. If the truth
necessitates changes, and in that way, you end up feeling better,
that's wonderful, but you need to know I'm always up front about
these things.

I can't see the future. But I do believe the actual threat that is the
virus, is a temporary one in regards to your portfolios and the
markets in general. While your portfolio values have
unquestionably slid recently, I do not, in any way, believe this viral
threat to our economy to be permanent. Quite honestly, the main
threat to our own portfolios is the public's psychological reaction
to everything that is going on and whether there is panic or not.

Keep an eye on the amount of shares you own. Those are what
count. Because when the markets eventually climb again, your
shares will climb again too. During these more stressful times,
your share values may slide, but you will not lose any shares
unless we sell them on purpose.

And remember all the changes we made just over a year ago? I
didn't think they were going to be justified because of some virus, but I'm glad
we made them. Those changes aren't an impenetrable barrier
against loss, but I do believe they're making a difference versus
what would have been, and are mitigating your risk.

If you have any questions, particularly during these more stressful
times, I am always here to talk with you. Give me a call if you'd

David S. Chorney

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