May 4, 2020

Life is 10% what happens to you and 90% how you respond to it.” Lou Holtz, Hall of Fame football coach


As the battle against the COVID-19 pandemic continues, how we respond to it will determine how we beat it. Continued sacrifices range from everyone in the medical community working on the front lines to the thousands of truck drivers across our country keeping goods flowing, parents who have become homeschoolers, and folks missing their family events to help stop the spread of this terrible outbreak. As Lou Holtz said, we can’t control what happens, but how we respond to it is what matters. Our response to this crisis has shown the resolve and strength of the human spirit, which is why we will overcome.


The response from the economy and stock market, however, has shown a disconnect between the two. Tragically, 22 million people have filed for unemployment in the past four weeks, nearly wiping out all the jobs created during the record 10-year economic expansion. Historic drops in consumer confidence, retail sales, industrial production, oil prices, and housing starts have shown how quickly our economy has gone from solid growth to virtually stopping in its tracks. Yet, stocks have been soaring the past few weeks. Remember, stocks tend to lead the economy both on the way down and on the way up, and the big move recently may be a sign the economy could turn around later this year.


This recession—though not officially declared yet—is unlike any other. It wasn’t caused by the virus itself, but by the government telling people to stay home in an effort to flatten the curve. The government can’t simply turn on a switch to get things back to normal, but with all of the stimulus making its way through the system, it’s possible this could be one of the shortest recessions ever.


We have been conducting our meetings over the phone and on video conferencing during this time, but we are pleased to have our doors back open for in-person meetings.  Please stay healthy, and don’t hesitate to contact us if you have any questions or concerns.  For more information also check out our videos at


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. 


Submitted by Southwest Investment Advisors on May 4th, 2020

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