MARCH 19, 2020
SOMETHING SOMEONE ONCE SAID
"We could never learn to be brave or patient if there were only joy in the world." - Helen Keller
While the purpose of this space is financial education, we’re humans first. So, let’s start with this: everyone BREATHE. Sure, it’s true Covid-19 (aka. Coronavirus) has officially consumed every aspect of human livelihood in the developed world. And, our new reality involves “social distancing” (see: domestic quarantining), homeschooling, closed restaurants, and a sh*tload of hand sanitizer. But let’s keep in mind, the symptoms of this disease are sore throat, runny nose, and a fever. The human race has survived the bubonic plague, Spanish Flu, and Cholera.
We will survive.
Speaking of defeating nonsense, we’d like to pause here to offer a friendly PSA. Contrary to what some Americans believe, Coronavirus cannot actually be contracted by drinking Corona beer. Because of this myth, Corona stock has taken a massive nosedive, just like the rest of the stock market. With that gentle segue, let’s dig into the financial carnage being witnessed on Wall Street and around the world.
As restaurants and most public places shut down to combat the spread of Covid-19, the services industry (particularly leisure and hospitality) figures to be the hardest hit area of the US and global economies over the next several weeks. Together, these industries make up 9.8% of consumer spending, or roughly $1.45 trillion in the most recent quarter. For a little context, that’s more than triple what was spent on automobiles and parts over the same time period. Leisure and hospitality industries are responsible for 14.1% of private payrolls, or 18.2 million jobs. How many of these are lost (or kept) will largely depend on how much the disease spreads and when the public is allowed to socialize and roam freely again.
So, where do we go from here? We certainly don’t have all the answers, but what we do know is that no matter how grim (or frothy) the markets get, nothing lasts forever. Evergreen has had our clients defensively positioned for quite a while and we’re now using cash reserves to buy stocks that are getting overly (and unfairly) decimated by something completely unrelated to their core operations.
We also know this is a time of tremendous uncertainty and knowing what to do with your finances during these periods can be extremely stressful. If you have any questions, or would like to become a client, feel free to give us a call (425-467-4600) or shoot us an email.
Stay strong, peeps.
TOP PERFORMING S&P STOCKS (YEAR-TO-DATE)
1) REGENERON PHARMACEUTICALS (REGN) +17.40%
2) CLOROX COMPANY (CLX) +14.55%
3) NORTIN LIFELOCK INC (NLOK) +12.84%
4) ROLLINS INC (ROL) +8.15%
5) DIGITAL REALTY TRUST (DLR) +8.09%
TRENDING ON TWITTER TODAY
To stave off cabin fever (and downright insanity) Twitter users are posting all the things they're doing to entertain themselves while in quarantine. If you haven't been on Twitter before, it's about to get weird.
Any guess what people are thinking about this Thursday? Hint: it rhymes with Shmaronavirus..
Current Hawaiian congresswoman Tulsi Gabbard has announced the end of her bid to become the 2020 Democratic presidential candidate, endorsing running competitor Joe Biden. Regardless of your political leaning, Gabbard is a veritable badass. She's the first Hindu member of Congress, served on the ground in Kuwait and Iraq, and is currently a major in Hawaii's Army National Guard.
In a cruel bit of irony courtesy of Mother Nature, today marks the earliest spring in 124 years. Here's to hoping warmer temps bring better days STAT.
People of the Twitterverse are using this hashtag to air their grievances on a slew of workplace protocol topics amid the spread of Covid-19. HR departments everywhere: you better check yo'selves.
FINANCIAL ARTICLES WE LOVE
1. Uber is Going to Zero and its VC Backers Know It
This missive from our friends at Medium makes the case for why the ride-sharing giant may be headed for ruin. The foundation for this theory is that their moat isn't nearly as broad as one might think. Read here.
2. 7 Bank Discounts for Young Americans that Make Life a Little Easier
We all need any / all help we can get right now and banks are offering a few perks for young people to save some extra cash. Read here.
3. 6 Coronavirus Scams to Watch Out For
Whenever times of panic or crisis set in, the cyber-predators smell blood in the water and start to attack. Watch out for these six scams that are popping up online. Read here.
What nation has the most fresh water on earth?
SUBMIT YOUR FAVORITE TRIVIA QUESTION TO BE INCLUDED IN NEXT MONTH'S EDITION OF THE RUNDOWN.
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ONE GOOD THING
In these times when everyone is seemingly fixated on the possibility of an impending apocalypse, picking up a hobby is probably a great idea for all of us. And, it turns out that humans are pretty damn good at things they don't really give an F about. Ever notice how that person who casually gives something a try with little concern for the result is shockingly better than someone trying really hard? Well, apparently disregarding the outcome is a surprisingly effective method for success. Given the current global state and everyone caring exponentially about everything, we'd all do well to give zero fuc#s and try something new -- or something we gave up on a while ago. So dust off that old piano and start playing like you don't really mean it.
THE EVERGREEN LINK
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TRIVIA ANSWER: Brazil. The South American country has nearly 2,000 cubic miles of renewable fresh water resources - or around 12% of the world's total.
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**Evergreen may consider the tax consequences of certain investment decisions for the models used for client portfolios, the Evervestment program does not take into account the individual tax considerations of specific clients, and Evergreen does not provide any tax advice. The client is responsible for any tax implications and/or tax obligations that arise from the client’s decision to enroll in the Program.
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