The markets are lower for reasons that are obvious to most investors, and with that the assumptions and opinions for what may lie ahead are also heavily tilted toward the negative side. It is easy and normal to be pessimistic after the markets have fallen and the news remains concerning, but it’s also important to remember that markets tend to bottom when the outlook is at its lowest. Markets bottom on bad news. Most everyone knows that an economic slowdown will likely follow the virus crisis, and the stock market is reflecting that belief. However, the markets also tend to look forward, and we think stocks will soon be reacting to the inevitable recovery and an investor who can see beyond the current difficulty will see the unusual and rare opportunity that has been created.

Tim