To state the obvious, the second quarter of 2020 was a major challenge in every way—The Covid-19 virus traveled across continents leading to a global pandemic. The economy dipped into the steepest recession in nearly 100 years (and possibly rebounded… more on that later). One out of five Americans were unemployed overnight. And the death of George Floyd launched unrest among neighbors and the most profound call for racial equality since the civil rights movement of the 1960s. The societal background of fear and chaos has prompted much needed reflection and focus on the truly important things in life.
Despite the disruption, there is reason for optimism. Human beings are resilient. And, broad incentives to spark strategies for progress and cures expedite innovation and advancement. Good businesses will seek outside thoughts and opinions to shape strategy and create best practices during times like these, but great businesses will do so all the time. We were already in the process of forming our new strategic board of advisors when the pandemic hit, so we are especially grateful for their vast experience and unique perspective as we seek to serve clients’ best interest during this period of ambiguity. The advisory board includes a retired vice admiral and former inspector general of the Navy, a Harvard trained attorney and former amateur boxer, and an advanced analytics specialist and strategist in the NBA. Please take a moment to “meet” our extended team— click here to view.
Like 994 Group, many companies will continue evolving and growing despite the difficult environment encompassing the economic themes we outlined at the beginning of the year. Of course, we didn’t predict the pandemic, but we did acknowledge that something would happen to disrupt the economy—we just didn’t know exactly what or when. The aforementioned economic themes include ballooning federal deficit exacerbated exponentially by efforts to mitigate the pandemic’s economic fallout, the move from multi-lateral to bi-lateral trade deals, the presidential election year, and the economic tug-of-war. Only one theme is no longer a concern: the obsession with recession prediction… because it already occurred! Not only did it already start, it may already be over, so let’s start there: …
2020 has been tumultuous, and the resulting change and uncertainty are unnerving. The second quarter presented an array of trials that will test the will, grit, and patience of our nation. Fortunately, we have a long history of progress and success. We remain optimistic that tomorrow will indeed be better than today. We intend to play a part in creating that better future for our clients, for our families, and for the betterment of our community.
Sources: https://seer.cancer.gov/, cancer.org, dimensional.com, ftportfolios.com, BlackRock.com, Morningstar.com, MSCI.com, finance.yahoo.com
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