Dear Valued Client,
I hope that you are feeling well and dealing with all the changes that have so suddenly been presented to us all.
Please be assured that during this “crisis” our office is open, functioning and servicing your financial accounts and needs. We are actively doing our work for you and plan on continuing to do just that. While we are not conducting in-office appointments, we are doing phone conferencing and have FaceTime and Skype capabilities. We are sending documents by email and regular mail. In some ways, we are even more accessible to you and able to serve you as efficiently as ever. Maintaining communication with you is one of our highest priorities, so please do not hesitate to call or email.
As a reminder: Our phone number is (716) 632 – 6800. My email is firstname.lastname@example.org. A complete list of emails can be found on our website at SCPARKER.COM.
The stock and bond markets have gone through a very sudden and deep decline. This will show in your upcoming quarterly statements. We have gone from record highs in the stock market to bear market levels in just a few short weeks. Since the beginning of the year, the approximate declines in the stock market are roughly as follows: Large companies, minus 20%; Midsized corporations, minus 25%; Small corporations minus 30% plus. Additionally, we have seen larger than normal swings in the market on an almost daily basis. In the meantime, the bond market funds which had held up pretty well in the early stages of this crisis turned negative, so they are down approximately 3 to 8% as well.
Technically speaking, the declines of 20% and more in the stock market make this is a “Bear Market.” One point of analysis is that the market now anticipates a recession. The textbook definition of a recession is two or more quarters of decline in Gross Domestic Product. All of this has been accompanied by a steep drop in oil prices. The oil price drops alone would have likely created a substantial market decline. The recent passage of the CARES Act will hopefully help as we go forward. An overly short simplification could read as follows: A health “crisis” of unknown proportion has prompted an economic downturn and an extreme investment market fall which in turn prompted a massive stimulus law and significant action by the Federal Reserve.
We, of course, do not know how all this will come to a conclusion. Certain aspects of the economic disruption may likely be permanent. We do know that it is our intention to continue working on your behalf. SC Parker was originally founded in 1925, four years before the Great Depression. I completed the purchase of the firm in 2018 and plan to carry on through all this and well into the future. It is a true honor to work for you. Thank you, stay well and please let us know if we can be of any help.
Jeffrey E. Hahn
Certified Financial Planner ™