COVID-19 Update
As many of us continue to self-quarantine, shelter in place, and work from home, we thought it interesting to note the Chinese word for crisis is apparently composed of two symbols. The first means danger and the second opportunity.
With that in mind, we thought you would like an update as to what the government has done, what we have done, and what you can do during this time.
What the government has done:
Federal Reserve has cut short term interest rates to near zero. They have also started direct purchases of US treasuries and mortgage-backed securities. Some form of fiscal stimulus from Congress seems imminent (assuming we can get past the partisan politics).
What we have done:
We have raised cash in all five of our managed portfolios. With an eye toward the opportunity part of crisis, we await a better understanding of the intensity and duration of our situation before we reallocate.
Remember, this too shall pass. There will be opportunities ahead of us. If you have lazy money at the bank or you would like to explore other options, give us a call.
What you can do:
Turn off the TV and enjoy time with family.
Assess your current mortgage. Does refinancing make sense
Look at your current life insurance policy. How long will it last? Should you make changes?
Do you have a plan for long-term care?
Are you over-exposed to market risks?