March 14th 2020
By: Team Sponsor Dave Dupont
Senior Vice President – Financial Advisor
Senior Consulting Group
RBC Wealth Management
I want to reach out to give you an update of where we are in this market and to give you our latest thoughts about where we think we are headed. Click here for RBC’s latest view on the coronavirus and potential impacts.
Regarding the markets, we feel like the economic impact that the virus is having will lead to a decline in GDP growth for the first 2 quarters of the year. We see a modest bounce back in the 3rd quarter and a bigger bounce back in the 4th quarter. I feel like most or
all of the negative impact to the stock market has already been felt as we are down roughly 25% from the high water mark earlier this year.
*Please note that your specific portfolios are not going to be down that much unless you are 100% invested in stock. To the extent that you have cash/money market, bonds or other fixed income investments, your downside hasn’t been as great as the general stock market. The extremely low interest rates that are out there have helped to keep bond prices generally more stable than stocks. I’m happy to help you sort through the calculations of your specific portfolios.
We are continuing to monitor the markets and make changes in our models as we feel are appropriate. However, given the rapid and constantly changing nature of the decline it has been difficult to make bold moves in any one direction. At this point I am not advising anyone to sell their stocks unless there is an urgent need for cash for some reason. I’m confident that markets will stabilize and start to move back up once some of the news turns less negative and less sensationalized.
Just as an FYI, I have personally made no changes in my 401(k) or IRA investments since this downturn started. I also have tried to avoid frequently looking at my account balances because 1) I already know that it’s down significantly and seeing the actual number isn’t going to help me feel any better and, 2) I know I own good quality investments and that values will go back (as they have every ti
me in the history of the US stock market). That faith keeps me from making short term decisions that I would probably regret down the road.
I am keeping relevant updated information on my website www.rbcwmfa.com/david.dupont I would encourage you to check this out for our latest thoughts. To access this, go under the section at the top of the page titled “Resources and Insights” and select “Market Commentary”. As always, I am here to talk through with you anything on your mind. While we are somewhat in “unchartered waters”, I believe that we have a good handle on where we are and where we’re going.
Lastly, please use common sense precautions in your daily life. I’m avoiding crowds if at all possible, I’m washing my hands constantly throughout the day (my mom would be so proud of me), and I am going through more than my share of hand sanitizer.
Thank you for your confidence in me and in RBC during this difficult time. It will pass.
For trends and more information click here!
David V. Dupont, AWM
Senior Vice President – Financial Advisor
Senior Consulting Group
RBC Wealth Management
1055 Military Cutoff Road, Suite 200
Wilmington, NC 28403
p 910-509-0513
7029 Albert Pick Road, Suite 201
Greensboro, NC 27409
p 336-668-2877
Web Site: https://www.rbcwmfa.com/david.dupont/