Market Insights -March 31st, 2020

The market has dropped and when can we expect things to come back?


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Episode 018 – Bounce Back


Welcome to Market Insights from Southwest Investments. I’m your host, Rick Zich. Today, episode 18, Bounce Back. Joining me this morning is Bart Schannep. Bart, welcome to the show.


Bart:                 Good morning Rick, thank you.


Rick:                 How are you doing today?


Bart:                 I’m doing very good.


Rick:                 Excellent. Today, bounce back, we’re talking about just the overall market right now is tough. Most recently, three-million-plus unemployment claims that were filed in the past week. Unheard of, unprecedented, all those other kinds of things that we hear in the marketplace. We’re going to talk a little bit about bounce back regarding that. Alright. Why don’t you start us off?


Bart:                 Excellent. The coronavirus obviously has been a very big deal and has affected everybody. In our country, we saw our markets head down. At moment, the lowest point on the S&P 500 was down 34 percent from the all-time high. Now, we know we’ve talked about before market weaknesses and that a market drop or decline of around 20 percent or better happens about once every three and a half years. We’ve talked about that before, and it’s been a while since we’ve had anything like this.

What about the bounce back? Okay. Let’s talk about that. Now, not every bear market is accompanied by a recession, but every recession has a bear market. Now, with the unemployment claims of three million just recently, that no doubt will lead to a recession. We don’t know. Not enough time has gone by, but we’re sensing general economic slowdown that should imply a recession.


Rick:                 That’s right. There are lots of things out there, whether it’s the internet you’re reading, newspapers, just individual advice that you might be getting from another financial advisor. Recession is one of those terms that is commonly being thrown out there.


Bart:                 Right. Now, the problem is, frequently we don’t know when a recession starts. We don’t necessarily know when a recession ends until it’s been over for a while. As you can see on the accompanying chart, from the lowest point of the market, and again, we don’t know when that is, but at the moment it was March 23rd 2020, we had been down 34 percent.

On the accompanying chart, you can see how the markets have bounced up from the low point of the bear market to when the recession is declared over. My point of showing this is it’s not okay to simply wait until you feel better and when the recession is declared over to then start thinking about investing.


Rick:                 Looking at that last chart where it shows the March 2009, 94, is that a percent?


Bart:                 Yes. The market went up 94 and a half percent from the bottom. It almost doubled [Crosstalk] [03:29] before the recession was declared officially over.


Rick:                 Doubled. That just goes to show you that this is just one of those things that if you don’t get in early enough, or if you get out, you’re going to be missing out. Those are the real two things that we deal with on a regular basis,. Fear, we’ve talked about fear and grief in the past. That fear is if you get out of the market, it’s really difficult to get back in. That 94.5 percent is what you’re going to miss. That was the large one, but look at August 1982 was a huge.


Bart:                 Went up 123.8 percent before the recession was declared over. It goes back to the adage, “Buy low, sell high.” What that necessitates is buy when it’s scary.


Rick:                 Excellent. Well, thanks so much, Bart. I appreciate that information. Again, the market bounces back. It’s been that way in the [music plays] past, and history has shown. Thanks so much for joining us. We’ll see you next time around.


Sarah has been working at Southwest Investment Advisors since October of 2017.

Hers is the first friendly face you will encounter when visiting the office.

Sarah’s responsibilities include assisting clients with online access, processing account documents, scheduling meetings and assisting in all aspects of client services.

When she is not working here you may find Sarah on the shooting range serving as an assistant instructor and safety coach.

She has two children, son Zach is a graduate of the University of Arizona and daughter Paige who will graduate in 2019.


Kataya has been with Southwest Investment Advisors since January of 2017.

She assists Alix with portfolio construction, rebalancing, and trading.

Kataya also plans our company’s client appreciation events and assists with the company website.

In her free time Kataya enjoys spending time with her family and her dog, traveling to new places, and getting involved with local events.


Lacey has been with Southwest Investment Advisors since 2007 and has been the Operations Manager since 2012.

Her primary duties are assisting clients, assisting Advisors, processing paperwork, and working with our back office at LPL Financial.

When she’s not working she enjoys riding horses and spending time with her husband, Dustin, her two small children, and her dogs, Tebow and Ellie.

Lacey and her family really enjoy traveling, spending time outdoors, and watching her dad, Robert Wright, play the banjo.


Robert has been an Advisor since 2012 following in the footsteps of both his father and grandfather. He holds a Bachelor’s Degree in English Literature and graduated Summa cum Laude from BIOLA. After working several years in Social Services Robert has a distinct perspective when helping people create and manage their financial goals.

When Robert is not working, life is all about family. Along with his lovely wife, Robin, four beautiful children and their dog, he enjoys traveling in the family bus, which is always an adventure. He enjoys meditating, praying, journaling and plays the guitar daily to maintain his sanity!

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Licensing and Regulatory​:

Licenses: Series 7, Series 63, Series 31 held through LPL Financial and the Series 66 is held through LPL Financial and Southwest Investment Advisors


Rob is an original co-founder, has been in the industry since 1994. He has degrees in English and Liberal Studies as well as a Teaching Certificate from California State San Bernardino.

Before becoming a Financial Advisor, Rob was a member of the New Christy Minstrels and he continues to perform with his banjos and other stringed instruments in concert as a member of the Wildcat Jazz Band throughout North America and as a guest artist with local symphonies and at various music festivals. Rob and his wife, Linda have one daughter and two grandchildren.

Rob has since retired and no longer has duties at Southwest Investment Advisors, Inc.


Original co-founder, Bart has worked as an Investment Advisor since 1983.  He was with Dean Witter/Morgan Stanley for fifteen years, serving as Branch Manager during the final four years, before moving to Piper Jaffray as Branch Manager for an additional three-and-a-half years before co-founding Southwest Investment Advisors.

In 2008, Bart become one of the first 200 professionals obtaining the industry’s newest designation, the Certified Wealth Strategist® designation, and administered by Cannon Financial Institute.

In May, 2010 Bart was selected for the distinction of Outstanding Advisor of the Year by Registered Rep Magazine, one of 10 financial advisors selected by the editors for 2010. From hundreds of nominees, the winning advisors have demonstrated both business success and leadership in serving as guides to other financial advisors and as active participants in community activities.

He is active in his church and served as President of the Board for Gospel Rescue Mission of Tucson from 2007 – 2010 and 2015 – 2018.  Bart also has served on the Board of Adjustments for the town of Oro Valley from 2002 – 2008.  Bart and his wife Marcella have three grown children and several grandchildren. Together they enjoy wine tasting, scuba diving, and travel.

Bart has since retired and has no responsibilities at Southwest Investment Advisors, Inc.


Rick is in charge of the managerial duties at Southwest Investment Advisors.  As a Financial Advisor, he meets with new and existing clients and helps with problem solving.

He has a Bachelors of Science in Business and Marketing from Purdue University and an MBA from the University of Phoenix. His past 20 years of business experience includes roles of Controller, CFO, and President of consumer goods companies with double digit growth for over a decade.  He and his wife own a local jewelry boutique, Trinity Diamonds.

Outside of the office, Rick enjoys keeping up with the latest in tech news, scuba diving, hiking, playing the electric bass guitar (well, trying to), and keeping the dogs happy with long walks.

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Alix’s primary roles in the team are portfolio management and client contact. She focuses on building and maintaining client relationships and reviewing and constructing portfolios that reflect clients’ individual goals.

Alix holds a BS in Business Administration from Pepperdine University, where she studied both in Malibu, California and Florence, Italy. She started with Southwest Investments in 2009 on the operational side of the business and has built her way to the sales side.

In 2014 Alix obtained one of the industry’s newest designations, the Certified Wealth Strategist® designation, administered by Cannon Financial Institute.

When she’s not in the office, Alix enjoys traveling and exercising with her husband Phil, singing at the Vineyard Christian Community, and meeting up for tea or a cold brew. She has a wonderful family and close group of friends and is excited to be a part of the team here at Southwest Investment Advisors.

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