Market Outlook · March 16, 2020

Market Volatility: COVID-19 - Three Weeks in Pictures

Brent Ciliano

CFA | SVP, Chief Investment Officer

1 Quick overview of the US fiscal stimulus package unveiled Friday

On Friday the 13th at 3pm, President Donald Trump, members of his administration, industry leaders, and health officials delivered a clear, detailed, and powerful message not only to America and the world, but also to markets - the White House and US government would take swift, strong, and robust fiscal actions to counteract the devastating economic effects of COVID-19. Markets swiftly reacted to the proposed measures.

2 Three weeks in pictures

Historically, the market hasn’t discriminated between recessionary or non-recessionary declines. Average bear market declines in recessions aren’t much different than those not associated with recession. The current slowdown is not driven by an endogenous build-up of an imbalance in the economy but rather by an exogenous shock that literally came out of the blue. This argues for the current slowdown to be short and deep.

3 What are we doing in your portfolios?

We'll discuss tax-loss harvesting, dynamic asset allocation and active risk budgeting.

4 What should you do when something like this happens?

We'll cover 5 things you should consider in a market like this.

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