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Our Position on the Stock Market in Light of the Coronavirus

It goes without saying that the coronavirus has had a huge impact on the daily lives of Americans. States are mandating lockdowns; the economy has taken a massive hit and most Americans are primarily concerned with the safety of their family. While the stock market is down over 15% from its peak on February 19 (as of April 20), Demand Wealth views the coronavirus situation as more of an opportunity than a setback and is encouraging clients to remain calm and stay the course.

We stand fully committed to our clients as we monitor the situation and are constantly looking for ways to improve our portfolios. We believe in the power of passive, long-term investing and consequently view stock-market drops as buying opportunities rather than reasons for panic, particularly for those who have a time horizon beyond several years.

While it’s impossible to time the market or predict future returns with any certainty, the stock market’s drop improves our market outlook moving forward. We believe that the current pandemic has caused the stock market to correct to a more reasonable level, leading to improved return forecasts. Considering the coronavirus market correction, we agree with one of our most important portfolio partners, Vanguard, whose 10-year S&P 500 return forecast increased to 6.8% per year, up a whopping 2.4% from December 31st, 2019 when their 10-year projection was a more modest 4.4%.*

Seeing massive swings in the stock market can be fear-inducing in the short term, but it is important to focus on the big picture in conjunction with your time horizon. As scary as the coronavirus situation is, we believe the global economy will recover. Do your best to look past the hair-raising headlines, stay the course, and prepare for clearer skies ahead.

Your investment dollars can help find a cure. Read about the ‘Demand Vaccine’ portfolio here.

Our COVID-19 Relief Program

During these uncertain times, we know that many people are suffering from various hardships such as job loss, financial struggle, or being on the frontlines of the medical care industry.

We believe it’s our duty to donate our time and expertise by providing Financial Consultation services for FREE to help those most heavily affected. If you or someone you know has significantly suffered from COVID-19, please submit our eligibility form to see if you qualify.

*Data taken from a Vanguard letter to investors, 3/23/2020.

This report is a publication of Demand Wealth. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.