From the Engine Room: Q1 2020

2020-04-20T16:50:44+00:00 April 17th, 2020|Global Economics, Investment Advisory, Quarterly Updates|

An Economic Cliff or a Pothole

“Riding out this historic decline is how investors will earn the premium returns of stocks when the firestorm of terror burns itself out and the permanent advance resumes.”

 -Nick Murray, Author

At the beginning of 2020, the world economies seemed primed for positive results with most economists and Wall Street investment firms forecasted an 8% to 10% growth in earnings for US stocks, a 10% to 12% growth in earnings for European companies, and a 14% earnings growth for emerging market economies, which now represent 40% of the worlds’ gross domestic product (GDP), the largest segment of the world’s traded goods and services.

With the China trade wars behind us and BREXIT had finally come to a resolution for its demerger with its European neighbors, it would be a year in which you felt Trump would be on best behavior to keep an American economy on track for economic success as he vies for another Presidential term.

And then the unknowable appeared as it so routinely does…COVID-19.

Ultimately, there will be an end to this tragedy.  Our financial plans and procedures are in place to weather the most dire predictions and will support an early resolution.

“Self-control is strength. Calmness is mastery. You have to get to a point where your mood doesn’t shift based on the insignificant actions of someone else. Don’t allow others to control the direction of your life. Don’t allow your emotions to overpower your intelligence.”

-Nelson Mandela

Click the following link to access your copy of Timonier’s latest quarterly newsletter and update on the capital markets: From the Engine Room Q1 2020.

We hope you enjoy the thoughtful insights from our President and CEO, Tim Baker.