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Quarterly Market Update 2020-Q1

It is said that March comes in like a lion and out like a lamb. This year was reversed and the “COVID-19 lion” still lingers. Who knew on March 1st that our world would be turned upside down in four short weeks?
When March began, there had been only one U.S. death from the virus. During that first week, we spoke with an infectious disease specialist and had numerous conversations with market analysts trying to get a handle on both the human and economic impact facing the U.S. Everything we were hearing and reading referenced the virus as having “minimal disruption” in the U.S.
During the second week in March, however, it became apparent that not only was the virus spreading rapidly, but the economic contagion was going to be worse than anticipated. Stocks tumbled and credit markets began to freeze up. Bonds, which are often thought of as a safe-haven when stocks decline, were very volatile. As events unfolded, we took actions to reduce risk in your portfolio. 
Some clients have asked if the stock market has “bottomed” and if this is a buying opportunity. We believe that caution is still in order. The 2008 financial crisis gave us steep downtrends followed by rapid uptrends, only to be followed by steeper downtrends. Even before the pandemic numbers begin to subside in the U.S., the markets may start to rebound. But there may be more downside risk before that happens.
We have spoken with many of you about your portfolio. As always, we invite you to call us at 602-242-4000 if you have any questions about your statement or if you would like to make adjustments to your investments.
On a positive note, it has been heartwarming to see the goodness of people serving each other in new and innovative ways. We are deemed an essential business and will remain open, but are practicing social distancing. It has been hard to stay away from friends and extended family, but we are learning to keep in touch and express love and encouragement from afar.
This historic moment gives all of us a chance to refocus our priorities. We pray that you and your loved ones are safe and that Americans will unite together to get through this crisis.