03/18/2020

So how are you feeling these days? Are you feeling confident and strong, or are you shaken to the core?

Over the past several weeks we have been focused on the market turmoil caused by the COVID-19 outbreak. Understandably so, the financial impact (at least over the intermediate term) will be meaningful and we still have no reliable understanding as to how long this all will last. It is no exaggeration to say that there is a lot to worry about.

As we attempt to gauge the shock to our financial well-being, let's not overlook the effects this crisis is having on our emotional well-being. Fear and anxiety can be overwhelming and extended periods of stress can trigger a wide range of problems. The COVID-19 pandemic is changing nearly every facet of our society and it will impact each of us in different ways.

Disruptions to everyday life and regular routines can be deeply upsetting. Encountering long lines and empty shelves at grocery stores can make our world feel out of control. We simply have no reliable reference point for much of what is happening. These are confusing, disturbing and stressful times for everyone. Along the way, many us of will feel despondent over the crushing insecurity of it all.

Making matters worse is the sense of isolation we will experience as we adhere to calls for social distancing and working remotely. Social gatherings, sporting events and places of worship are suddenly off limits. Humans are social beings and we thrive in community with one another. We typically don't do so well when we are disconnected for long periods of time.

Experts in the field of emotional health recommend that we pay close attention to this new reality. This begins with the realization that feelings of anxiety and uncertainty are completely normal during times like this. Also, we must not lose sight of the fact that everyone is being impacted by this crisis. Our lives may be turning upside down, but we are all in this together and no one is getting a pass.

These same experts advise that we do everything possible to establish fresh routines in place of those being displaced. We should be intentional when it comes to exercise, healthy eating, and enjoying down time. Taking care of ourselves optimizes our ability to think clearly and manage emotions. We should also be aware of the strains on our loved ones, especially the elderly (perhaps a special phone call is in order). Children and teens are particularly vulnerable at times like these and may require extra support and guidance.

It is important to know when to disconnect from endless news coverage and social media interactions focused on the crisis. Most of us (myself especially) would be well served by turning off the television and picking up a good book. Uncertainty makes us profoundly uncomfortable and we may think if we just work a little harder or read a few more reports, we will figure this out. Maintaining a balanced and healthy outlook is impossible if we are continuously consuming worst-case scenarios for what may be coming our way. Clearly, we should all stay informed, but we must avoid obsession over every new coronavirus development.

The most difficult aspect of the crisis is it's potential to diminish our anticipation of a brighter future. This crisis is disrupting our plans and dreams for a better tomorrow. We all have a powerful and intrinsic need to look forward to life's milestones and have hopes for things yet to come. Hope gets us through tough times, and with hope in short supply these days, we must not surrender our ability to envision better times.

As I have shared with you, I am confident we will beat this crisis. My hope is well-reasoned and is based on our nation's resiliency and history of overcoming challenges. We will get through this and on the other side, we will realize we have learned a great many things; we will emerge stronger and (with any luck) wiser. Perhaps we will appreciate things previously taken for granted; maybe we will be less divided having come through the crisis together.

Even as fear and insecurities spike, I do not think it is misguided to say our best days are yet to come.

Best,

John

John E. Chapman

Chief Executive Officer

Chief Investment Strategist

Clearwater Capital Partners