Kane Financial Update – March 17th, 2020

3 Minute Read

I think many of us are still in a state of shock at what has transpired over the past 4 weeks.  The last update, two weeks ago, we predicted possible aggressive quarantine measures, schools closing, and large gatherings cancelled….it is difficult to believe those things became a reality.  

What I think happens next is that we get over the shock, and begin to move forward.  We are going to have a challenging period of time ahead of us that can last a few months or through the summer, nobody knows at this point.  What we do know is that we have some of the most amazing healthcare professionals in the world, we will get through this, and better days are ahead.

I believe the catalyst that will act as the beginning of a recovery will come from a break in good news.  Good news that Europe has gotten its situation under control, or a vaccine is ready to be rolled out to the masses, a successful treatment program has been found, or that we have been successful in flattening the curve here in the US.  This news, when it comes, will help to bring back confidence, clarity, and a recovery in our economy.

Speaking of our economy, the news is coming in at a dizzying rate so I cannot go into all of the details, but these are some of the developing items worth noting:

  • Markets – The markets are down around 25% from their highs in February.  For perspective, this puts us back to the levels around September 2017.  These sudden pullbacks present buying opportunities, and we will continue to take advantage of these when possible for clients.
  • Small business help – The SBA is already stepping in with disaster relief for small businesses to help weather this storm in the near term.  Expect more news around help for small businesses and their employees, hopefully included in the bill being drafted in the Senate.
  • Liquidity – The Federal Reserve has stepped into markets in a major way to ensure they continue running smoothly and there is plenty of liquidity in the system.  This was an issue in 2008-09, and they seem to be out ahead of this so there are not significant disruptions.
  • Checks Coming – Treasury Secretary Mnuchin today stated they plan on sending checks to the American people in the coming weeks.  Speculation were $1,000 checks instead of a payroll tax cut, as this would get money into citizens hands more quickly.  The amount is pure speculation, and they weren’t 100% clear on who gets them so stay tuned on this front.
  • Vaccine/Treatments – Organizations from around the world are racing to attack this virus from a number of angles including finding a vaccine, treatment programs, and preventive medicines for healthcare workers on the frontlines.  Phase one trials of a vaccine started this week after just 65 days, a record.  They hope to be ready to push forward in the late summer or early fall with the next phase.
  • Tax Relief – Individuals and businesses that owe taxes for 2019, can still file and defer those payments interest and penalty free for at least 90 days.
  • Technology & Telemedicine – The government has pulled back much of the red tape around healthcare, and are working on aggressive telemedicine initiatives.  Telemedicine is the ability for patients to phone conference or video conference with a healthcare professional.  This creates efficiencies, keeps vulnerable patients from needing to go to a doctors office or hospital, and if a healthcare professional is quarantined due to the virus, they can continue to help patients.

 We understand that this is a challenging time for everybody, and there are a lot of unknowns.  We will continue to communicate with clients on an ongoing basis, be diligent in our portfolio management, and continue to make ourselves accessible for questions and discussions at any time.

I am truly thankful in the trust you have placed in Kane Financial to help navigate these times, if you do have any questions or concerns, please do not hesitate to contact the office.

I wish you all the best.

Clint

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