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Special Market Update - A Year of COVID-19

We would never be the same after March 2020.

While the coronavirus arrived in the United States at least one month prior (perhaps earlier), infections, hospitalizations and sadly, even deaths, began to jump at alarming rates in early March.

On March 8th, Dr. Anthony Fauci, the nation's leading infectious disease expert, said that "There's no reason to be walking around with a mask. When you're in the middle of an outbreak, wearing a mask might make people feel a little bit better and it might even block a droplet, but it's not providing the perfect protection that people think that it is." Can you believe that statement ever came out of his mouth? Former President Trump and other Washington DC leaders initially claimed that the virus would not be a major problem.

After this initial round of hopeful denials, just about everyone changed their stance and the virus was ultimately declared a national emergency. The NBA famously suspended the 2020 season on March 12th. One day later the NCAA cancelled the annual "March Madness" basketball tournament. By Monday, March 16th, New York City had closed schools.

The stock market began the week of March 16th with a devastating tumble on the S&P 500 as it closed down 11.98%. This followed closely on the heels of a 7.63% decline on March 9th and a 9.51% decline on March 12th. The official bottom in the equity markets occurred March 23rd.

One by one, states issued stay-at-home orders shutting down all non-essential businesses, travel, education and social gatherings. . . creating a ripple effect that crippled the American economy for nearly a year.

But as early as March 25th, Congress approved a $2 trillion stimulus deal that gave most adult Americans a $1,200 check. The Federal Reserve cut the Fed Fund Rate to zero and launched a massive $700 Billion easing program to ensure widespread liquidity in virtually every corner of the financial markets. The financial markets began to grind higher and ended 2020 with a spectacular 18.5% return off the back of low interest rates, fiscal stimulus and Americans figuring out how to live from home, work from home, learn from home, workout from home and shop from home.

Now, a year later, we have the optimism generated by the vaccine program, the benefit of trillions of dollars in fiscal stimulus, rumors of a more than $4 trillion infrastructure package making its way through Capitol Hill, and a pledge from the Federal Reserve to not kill this recovery with higher rates anytime soon. Years from now, Operation Warp Speed and the invention, testing and distribution of an effective vaccine in less than a year will be heralded, documented and studied. Maybe they'll even make a movie about it. (The real question is whether we will watch that movie on the big screen in public theaters or via streaming in our private home theaters?).

Today we stand near the precipice of a return to normal. Once the country is vaccinated and herd immunity is achieved, individuals will be able to freely attend church, weddings, family gatherings, sporting or cultural events, shop in a mall, eat in a restaurant, see a movie, jump on a plane and generally live life again without the ever-present fear of Covid-19.

We feel the future is bright for our country. Medical experts are on guard and much more will be known about the coronavirus in the coming months and years. American discovered how to live under some of the most trying circumstances since World War II or the Great Depression. Most would agree we have come out tougher, more resilient and better equipped for the next national challenge we will inevitably face together.

The team of WT Wealth Management is so grateful to you, our wonderful client base, for having the trust to stick with us through all of 2020. A quick look back shows we've been through a lot together. We look forward to many more years and decades at your side, charting your financial future.


WARRANTIES & DISCLAIMERS

There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

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