“We must live and function in the times we are in”. This is what I tell my friends and family, and it seems to help those who are close to me accept the Covid – 19 circumstances we are currently dealing with. Our Legacy Wealth Planning office has amended our normal hours to now be 6:30 am to 1:00 pm Monday through Friday. This is to keep our in person social interactions to a minimum. All of our client communications are now by phone, email or regular mail. The good news is, if you want or need us, we are here and we are available. We Legacy Wealth Planning advisors are proud of each other and our staff who continue to service clients from the office or at home when the circumstances dictate it.

Most of you know, but a reminder that the government has extended the normal tax return deadline to July 15, 2020 for 2019 tax returns. Taxpayers can also defer federal income tax payments normally due April 15, 2020 to July 15, 2020. The deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Now, lets talk about the markets. As of this moment, the stock market is approximately 20% above the lows of 2 weeks ago and it is 20% below the highs it made before the Corona Virus collapse. Some individual stocks have experienced greater volatility than these numbers. If the industry is oil related, aviation (airline or aircraft manufacturer), or a cruise line, the declines have been worse. Many LPL Financial investors with diversified, balanced portfolios have generally fared well compared to the severe movements of some unfortunate individual equities.

Moving forward, LPL Financial Research expects more volatility, but believes that market weakness creates opportunity for establishing some long-term equity positions. We will get through this.  The double-barreled support from the Federal Reserve (Fed) and Washington’s recent $2 Trillion fiscal stimulus plan may help the economy once the Pandemic subsides. Fed chair Jerome Powell noted that we may very well be in a recession, but this isn’t a typical recession, as our economy started from a strong position. The $2 Trillion CARES Act, totaling more than 9.3% of GDP, provided an additional boost. For reference, the 2008 fiscal stimulus plan was 5.5% of GDP, showing how much larger this plan is than anything else we’ve ever seen. LPL views these measures as a bridge for consumers and small businesses to help them get to the other side, and so businesses are positioned to take full advantage when the economy restarts. The combined monetary and fiscal policy action may be the catalyst to propel a historic bounce back for our economy over the second half of the year.

World War I took more than 15 million lives, only to be followed by the pandemic of 1918, which claimed another 50 million. Very few people would have expected the boom in technological development and economic growth that took place right after along with a roaring stock market. We believe in staying invested and if you have any questions, call me. Please stay healthy – Mark

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. Economic forecasts may not develop as predicted. Some of this research material has been prepared by LPL Financial. All indices are unmanaged and may not be invested into directly. Referenced material: LPL Client Letter dated 3-9-20.  Approved Tracking   #1-962339.