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Today’s Market Commentary – March 17, 2020

Sigma Investment Counselors

March 17, 2020

We live in interesting times.

The current stock market behavior is reminiscent of the dot.com bust, 9/11, and the 2008 financial crisis, to name a few.  During moments like these, the market is responding not only to weakening economic fundamentals, but also fear and panic that arises during periods of uncertainty.

The global effort to slow down the spread of the disease has led to unprecedented steps such as closing borders, shutting down factories, businesses and schools, cancelling sporting and entertainment events and placing restrictions on restaurants and bars.  Clearly, this will have a significantly negative impact on economic growth in the immediate future.  Yet, as this virus works its way through the community and becomes contained, the mandatory and voluntary means of isolation will end and economic activity will rebound.

Importantly, the stock market is forward-looking.  It is highly likely that we will see an improving stock market in advance of the anticipated improvement in the economy.  For this reason, we do not recommend that investors sell stocks now and sit on the sideline, hoping to get back into stocks once the coast is clear.  By then, the market is likely to be meaningfully higher than it is today.

The best strategy to achieve one’s long-term goals is to remain committed to the investment strategy in place and ride through the storm.

As your investment advisor, we want you to know we understand the gravity of the current market environment.  We recognize the pain and understand the stresses created in this market environment.  We are present and available to listen.

Please do not hesitate to contact us as concerns and questions arise.

Sigma Investment Counselors

We have increased the frequency of our blog posts to keep you informed in this rapidly changing environment.  We will continue to share our thoughts and insights as we navigate through this period of volatility.

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