Fellow Teachers, before you panic take the time to read this!
My mom, 83 years young, is sitting in our living room having her daily coffee break with my husband and me. My husband is a self-declared news junkie, and it has been on all day non-stop. I tune out most of the time, because one can only take so much “Breaking News!” Today is different. Jaws are dropping as we see something that the three of us have never seen in our lifetimes. The world is going into hermit mode to brace against the tiniest of organisms.
We have a pandemic.
My mom is generally healthy, but she is in her 80’s, has well controlled Diabetes, and an auto immune deficiency that she has successfully dealt with for the last 20 years. I glance across the living room and see tears streaming down her face. “You know, I just want to see the kids (referring to my two boys, aged 18 and 13) graduate, get married, have babies…” She wipes her tears, straightens up in mom style, and says, “well, that’s enough of that.” She’s a tough cookie, my mom. But the fear is real, and it is causing some things we have never experienced.
Meanwhile, my kids are “stoked!” (Or whatever slang term meaning “excited beyond belief” that the kids say nowadays).
“Three weeks, no school!!! Woohoo!” As a parent, I am not dealing with the stress other younger parents are feeling. My youngest was a preemie and had respiratory issues when he was born. It was around the time of H1N1, and I was a mess. I can’t imagine how anyone with a newborn feels right now. If you are a parent of a bit older child, I would bet “How to talk to my child about the Corona Virus” is quite popular on Google. I would bet 85% of teenagers are indeed stoked! Fellow Teachers, Don’t hit the Panic Button yet!
Teachers…I get you.
Wow. I think it has gotten past the “how am I going to cover everything I need to cover before the end of the year” stage. Most of you are not thinking about the end of the year tests or the final exams. I think most of you might be thinking… I hope my kids are ok! Do they have enough food? Are they being well cared for? Are they freaking out and do they need someone to be there for them as a support? Or, how about the class of 2020…what a strange year to graduate without Prom, final sports seasons, graduation and open houses. Some of you are rolling your eyes. These events are months away, but who knows?
So, let’s just bring a few facts into the conversation.
The truth is that no one really knows what the full impact of COVID-19 will be to our global economy and stock markets, myself included. This unknown is certainly contributing to the volatility and uncertainty in the stock markets.
While the stock market has not experienced COVID-19 before, market declines like this are not unprecedented. In fact, if we look back from 1980 leading up to COVID-19, we could identify as many as 12 different epidemics resulting in market declines. These include HIV/AIDS in the early 80s, SARS virus and Avian (Bird) Flue in the mid-2000s, and the Zika virus in January 2016.
You may find it encouraging to know that within six months of these epidemics, the S&P 500® stock market index was positive in 11 of the 12 cases[i].
While past performance is not a guarantee of future results, history can occasionally provide us with some confidence about the market’s ability to weather these types of epidemics.
When stock market volatility increases, media outlets try to catch our attention with their take on what’s going to happen in the markets and when. Social media doesn’t help to reduce the noise that we experience. The headlines can cause many to lose sight of the fact that their financial plan is built around long-term goals, not short-term ones.
If you are a client of mine (and even if you aren’t), I am happy to review your financial plan and answer any questions and concerns you or your loved ones may have. In most cases, I would probably advise you to stay the course. For my current clients, your strategy was determined during a time when emotions were not driving decisions. However, my number one goal is for you to have confidence in your financial plan.
Your physical health is equally as important. Monitoring the virus and taking steps to minimize contracting it should be on your mind. The following is a link from the Center for Disease Control and Prevention with up-to-date information and prevention recommendations: https://www.cdc.gov/coronavirus/2019-ncov/index.html
As we navigate this life, roles tend to reverse. My mom used to hope I would not go out if I was in danger. Now I tell her: “Stay home!” She just wants to go to the post office and the pharmacy and to have lunch with her girlfriends. It seems as if my outings were much more dangerous during my teenage years; however, in today’s world? Who knows? My mom is listening to me. I am grateful. I do know this: Let’s be smart. We will get through this together.
