March 18, 2020

We at Symphony Financial would like to take a moment to wish you and your families well.  We are all focused on the local, regional, national and global reactions to the Covid-19 virus.  We are hopeful that both governments, business and individuals will continue working together for the welfare of our communities and the country.

Like you, we are also very focused on the stock market response to this pandemic.  During times like this, it is normal to be fearful as it feels like this is new and different.  While this pandemic may be new, the stock market’s reaction to uncertainty is not at all unusual.  Many people think back to 2008, so let’s learn from that and consider how our world has improved since that time.

Where we are today

  • Banks and brokerage houses have far more reserves than in the past and are in a stronger position to withstand economic stress (due to regulations imposed after 2008).
  • Most individuals have lower debt and mortgage rates are at a historic low.
  • Unemployment is low and we have just come off a 10- year bull market – so net worth is at an all time high.
  • Congress and the White House appear to be working together to provide some relief and the Federal Reserve is also cooperating. The White House has proposed a $850 billion dollar stimulus package
  • Market sell-offs and re-bounds happen fast. Selling stocks now and trying to buy back in a rising market, typically results in permanently locking in losses.

What we can do

  • With mortgage rates really low – review your loan to see if you would benefit from re-financing.
  • If your job isn’t secure, let us know and we will review your cash reserves. Cut back spending where you are able.
  • Continue contributing to your retirement plans and consider emphasizing stocks and stock mutual fund purchases, if you have a long time horizon.
  • If you have a large cash position, talk with us about the type of investment strategies that make sense for you.
  • If you have school loans, take advantage of the temporary freeze on interest for Federal loans and consider paying down more principal.
  • Remember that this too will pass. The time will come when the virus is under some kind of control and the markets will rebound as we return to a more normal life.

The security and health of our clients, advisors, staff and their families is our highest priority.  With that in mind, we recommend that we hold our meetings by telephone or Zoom web-conferencing, for the foreseeable future.  A Zoom meeting also allows us to share our computer screens with you – so you can view your financial plans or other important data in a secure fashion.  This allows you to spend time with your Advisor in the safety and comfort of your home (and allows us to work from our home offices, as well).  If you are unfamiliar with the process – we can walk you through it.

Please call or email us if you want to talk.  If you call 703-865-4092 and leave a message – we will get back in touch with you as soon as possible.

Stay happy and healthy.