03/22/2020
It is now painfully clear that the coronavirus outbreak is rapidly changing nearly every facet of life as we know it. The pandemic is first a matter of global health; however, this is just one of four distinct tests now confronting our society. In addition to the health aspects of this crisis, COVID-19 will have a material impact on our economy, on our markets, and on our personal well-being. Our response to each of these four trials will determine when and how we make it through this crisis.
It is important for us to recognize these four challenges are different and while interrelated, each will evolve along diverse timelines and in dissimilar ways. Careful analysis and understanding of these four elements will foster better decision making and reduce anxieties as we navigate the days, weeks, and months ahead.
The difficulties we face are compounded by how rapidly the situation is moving. While the virus itself is spreading quickly, the pace of dislocation occurring in our economy and markets is unprecedented. Not surprisingly, the stress of it all is causing some people to swing from levels of "legitimate concern" to "irrational panic" almost overnight. How else can we explain the hoarding of toilet paper?
Clearwater Capital's mission has always been to bring clarity to a complex world. It would be hard to imagine a more complex set of challenges than those we are now up against, and it would be hard to imagine a time when clarity was of greater consequence. Please know our commitment to you is unconditional. We are fully mobilized and engaged in maintaining well-reasoned assessments of a fast-moving situation. This includes daily contact with the industry's most prominent thought leaders and access to exceptional research resources. We will communicate frequently with you; as together we chart a sensible path forward.
Our assessments and commentary will be organized according to the four unique challenges set forth above; health, the economy, capital markets, and personal well-being. While our expertise is in economics and markets, we will briefly offer insights to health and well-being matters when doing so helps establish foundational perspectives. We will share our insights with you regularly and for as long as may be necessary for us to get through this. You are welcome to share our commentary with family and friends, and we invite your feedback. If you find something helpful, please share it with us.
Remember, at the center of this crisis is a virus - a serious virus that is terribly contagious and potentially deadly for some. While uncertainty levels remain elevated, we must bear in mind that this is not the end of times. Even in a worst-case scenario, in which most of us do get sick, we are not all going to die.
We can take great comfort knowing that this is when America shows up like no other country in history. This is when innovation kicks-in and when we, as Americans, rise to our best. We are going to figure it out. We will get the situation under control, we will discover new remedies and vaccines, and we will get through this.
Selflessness, generosity, and acts of kindness are surging. Please do your part. Be socially distant, but not isolated. Please stay calm, take care of yourself, and remain focused on those things that matter most. When we eventually reach the other side of the valley, we will go on to achieve even greater levels of prosperity and security than we enjoyed just a month ago.
John
PS. As we share our commentary with you, please know that we are much more than passive observers of this rapidly evolving story. Our team is working very hard on our response to the new wealth planning challenges that have emerged in this crisis. We are already mapping out recovery scenarios and the strategy adjustments we will need to pursue. Maintaining an intelligent and disciplined framework for decision making continues to be the cornerstone of effective wealth management, and we are on it. Best,
John
John E. Chapman
Chief Executive Officer
Chief Investment Strategist
Clearwater Capital Partners