top of page

SARS Coronavirus (COVID-19)

Writer's picture: Fulcrum Wealth AdvisorsFulcrum Wealth Advisors

Fulcrum Wealth Advisors, like most firms, has been fielding many calls about this current market situation. Many people are asking about this year’s outbreak of the coronavirus as it relates to the economy and stock market. First, we want to be sensitive to the families suffering from this outbreak. Sadly, some will feel the loss of loved ones (of all ages) long after the stock market recovers.

The reality of this outbreak hits us daily as we see the newly reported infections, deaths, closure of business, travel restrictions, and self-quarantine guidelines daily reiterated in the news. Further, we see the daily volatility with market fluctuations we have not seen since the financial crisis in 2008-2009. As most of us in the USA have never gone through this type of emergency it can feel even more confusing. Our goal in writing this is to put a container around some of the variables we are monitoring in our humble hope of bringing clarity.

Using Bloomberg, we are monitoring total confirmed cases, confirmed recovered, and confirmed deaths. A major unknown is the peak number of confirmed cases from this virus: the market is going to discount the loss of GDP and loss of earnings growth for companies as the number of new confirmed cases grow.


As our country finally takes this virus more seriously, we will see some businesses close temporarily, social events canceled, travel postponed, etc. This lack of activity will hurt companies’ earnings and GDP. Until the number of confirmed cases here and globally peak we will expect volatility in the stock market to continue as economic activity will erode.  When we see the total number of cases plateau and more importantly decline, then we will begin to feel confident we are nearing the bottom of this market decline. Revisiting our most recent blog (A Return to Volatility 2020 #5 - https://www.fulcrumwa.com/blog/return-volatility-2020-5), we stated the stock market had a high P/E multiple and would be vulnerable to negative headlines, such as the Coronavirus, the Presidential Election, and fear of recession. Further, we stated there would be more Federal Reserve rate cuts and quantitative easing. All these predictions became reality.


The sooner we get relief from the coronavirus the greater chance of a V-shaped recovery; the longer it takes to get relief, the greater the chance of a U-shaped recovery.

Investment advisor representative of, and securities and investment advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer and Registered Investment Advisor. Cetera is under separate ownership from any other named entity. Some Investment advisory services are offered through Fulcrum Wealth Advisors, LLC. Fulcrum Wealth Advisors, LLC is a registered investment advisor in the State of Washington.    Branch Address: 10940 NE 33rd PL., #210 Bellevue, WA 98004 Branch Phone: 877-400-0260 The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with or without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.


 
55 views

Registered Representatives offering securities and advisory services through Cetera Advisor Networks LLC (doing insurance business in CA as CFGAN Insurance Agency LLC), member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser.  

 

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services

 

Fulcrum Wealth Advisors, LLC is a state of Washington Registered Investment Advisory firm at 10940 NE 33rd Pl., Suite #210, Bellevue, Washington 98004 United States. Cetera is under separate ownership from any other named entity.   Investment Advisory services and tax consulting services are offered through Fulcrum Wealth Advisors, LLC.

 

This site is published for residents of the United States only. Financial Advisors of Cetera Advisor Networks may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Advisor Networks site at www.ceteraadvisornetworks.com.

Fulcrum Wealth Advisors, LLC is a registered investment adviser in the State of Washington & Texas. We may not transact business in states where we are not appropriately registered, excluded, or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.

Knockout Logo white transparent.png

Fulcrum Wealth Advisors

10940 NE 33rd Pl.

Suite #210

Bellevue, Washington 98004

Mail:  info@fulcrumwa.com

Tel:  (877) 400-0260

© 2024 Fulcrum Wealth Advisors, LLC, all rights reserved.

Site design by: Radically Distinct

bottom of page