March 19, 2020
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Using History As A Guide
At Prato Capital Management, our thoughts are always first and foremost on the health of the ones we call our family – our clients and their families, our friends and colleagues that we work with and all those who read our newsletters and social media posts.
There is much uncertainty in our country today. Uncertainty about the coronavirus, Covid-19 and the pandemic we see broadcast on the news. Uncertainty about the economy. Uncertainty about where we can buy milk, bread, and even toilet paper. Uncertainty about so many things. But generally, we are just uncertain of what the future holds for us in this health crisis we find ourselves in today.
The uncertainty gripping our country has also taken hold of the stock markets. Swings of 5-10% each day can be overwhelming for many investors.
At Prato Capital, we approach volatile times like these using all historical data as a guide while still incorporating all the current information. Yes, this is a unique period in history. Yes, it is unsettling to watch the news and the world around you. But, using history as a guide, the chart below shows the market’s response to some significant events over the past 35 years.
We believe this disruption to our lives will pass. We also believe that when the disruption to the global stock markets passes, so will the disruption to the economy. History proves this. History also is clear that when the markets do recover, they can bounce back quickly and often dramatically.
Stay safe in these uncertain times, love and care for one another and please call us anytime, even just to talk. We remain here for you…always