Pearl Impact Capital Blog Investing during times of crisis

In light of elevated volatility due to the COVID-19 virus, I thought I would offer some perspective on how we think about investing at Pearl Wealth in times of crisis.Markets have been reacting rapidly and aggressively to the anticipated economic and corporate fallout resulting from the Coronavirus pandemic. As of the market close on Friday, the S&P 500 Index (U.S. stock market), was down 15.73% since the start of this year. Foreign stocks are down even more, as many international markets have seen more COVID-19 cases to date. The MSCI All Country World Index (global stock market) is down 19.95% YTD through Friday. Bond values have actually gone up as interest rates have fallen in response to pandemic.While the current market volatility is uncomfortable, it won't last forever.As I write, markets are down again today, and could go lower from here. No one can say for sure. However, in time, with history as a guide, the stock market will recover. We intend to remain invested according to plan, and ride out the market ups and downs over time.The economy is no doubt slowing, likely temporarily, but perhaps significantly, as people hunker down, work from home and go out less as they wait out the spread of the virus. Stocks are appropriately pricing this in. Historically, pandemics should be transitory, lasting weeks or months but likely not years. Knowing this should help you put the moment into context. You shouldn't let even a global health-care panic lead you into doing something you will regret later.It always comes down to this: Have a plan and execute it faithfully. Trying to make decisions in an emotional environment of unknown outcomes can become an expensive exercise.At times like this, it can feel like nothing good will ever happen again. But it will. Better days are ahead.We are always available to answer questions and address concerns, or would just like to talk over your portfolio or revisit your financial plan.INDEX DISCLOSURESThe S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. There is over USD 9.9 trillion indexed or benchmarked to the index, with indexed assets comprising approximately USD 3.4 trillion of this total. The index includes 500 leading companies and covers approximately 80% of available market capitalization. Published and maintained by S&P Global, us.spindices.com.MSCI All Country World Index ("MSCI ACWI") is a market-capitalization weighted index of large and mid-cap companies across 23 Developed Markets (DM) countries and 24 Emerging Markets (EM). As of December 2018, MSCI ACWI Index covers more than 2,700 constituents across 11 sectors and approximately 85% of the free float-adjusted market capitalization in each market. It is used as a common benchmark intended to represent MSCI's widest crosssection of DM and EM global equity markets. Published and maintained by MSCI, Inc., www.msci.com.