Overwhelmed?
Lately, there has been a certain sense of being overwhelmed. News surrounding the pandemic has everyone on edge. Data consumes us. What is the case count? Is my state rising or falling? How many deaths? Is there any progress on a vaccine? With this constant barrage of information, the tension is palpable and human behaviors have changed. Some of the change has been positive, yet some is not productive at all. These changes reflect the deep concern all of us have about the nature, extent and timing of this global health crisis. Speaking only for myself, I am hopeful that we will make progress on a vaccine and this current level of anxiety will abate. Additionally, I am really looking forward to being able to return to normal routines.
As if the pandemic wasn’t enough, I think most of us would acknowledge that the political environment is quite overwhelming right now. The Presidential election, a Supreme Court nomination, relief packages being debated….and the most complex social issue, race relations. Can we make any sense of it all? Is there hope for progress? I pray the answer is yes.
What about the markets? Do you feel overwhelmed by the mixed messages you hear and contrary reports you read in the press? The volatility indicators have moved higher in the last month, and we experienced significant swings up and down as markets have been like water sloshing around in a bath tub. But nothing major nor surprising has changed this month with respect to the markets. Interest rates have remained low. Business activity is coming back. Earnings have met expectations. Overall, 2020 is shaping up to be a good year for fixed income investors and the S&P 500 reflects a small gain. Does that surprise you? Let me point out that water sloshing around in a bathtub is much different than an incoming tide lifting all boats. Or the opposite, as Warren Buffett would put it, “an outgoing tide that reveals who has been swimming naked.”
Health…Politics…Investments. When I reflect on our current environment and begin to feel overwhelmed, I repeat a one word mantra: “Breathe”. The simple act of pausing to take a breath, letting your body absorb new oxygen which fuels our system while flushing out carbon dioxide, helps us relax and allows us to focus on what really matters. Try it. You might like it.
Ralph McDevitt September 30, 2020
Any opinions are those of Ralph McDevitt and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results. Keep in mind that individuals cannot invest directly in any index. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.
