In his recent shareholder letter, Howard Marks of Oaktree Capital wrote, “There’s simply no room for certainty in investing, and today more so than usual.”

In our previous post, we walked through the initial downturn of the stock market and what the recovery time looked like during previous health crises. Here we are, almost a month later to the date, and where we’ve seen some lifts and improvements we are all wondering one thing– are we on the road to recovery?

Last week, the S&P 500 rose 12% and had its best week since 1974, despite 6.6 million people filing for unemployment. This market action came on the heels of the S&P 500 having its worst month (March) since October 2008 and ending its worst quarter since the final three months of 2008, down 20%. Corporate earnings season starts today and the general consensus is that the reports are all going to be ugly. Yet, the S&P 500 is up over 2%. Why is the market doing so well while all of the news is bad?

One reason is uncertainty. The market hates uncertainty.

In mid/late March as we saw the coronavirus really start to impact the US. Businesses of all sizes were closing, we were uncertain how the government was going to help both businesses and individuals, and there were no emergency policies in place. It seemed as though we were in a “wait and see” pattern. Fast forward a few weeks, and while there is still uncertainty with this crisis, things are much clearer now. We know that policymakers and the Federal Reserve are going to provide stimulus to businesses and individuals, and emergency policies have been put into place.

Are we out of the woods yet and headed down the road to recovery? That’s hard to say. In fact, it has become challenging to know what kinds of expectations are being priced into the market because there has been no consensus on what to expect. Is it possible that the market has bottomed and we are on the road to recovery? Yes, that is entirely possible. But it is also just as possible that uncertainty could rear its ugly head again and this market rally could go by the wayside.

For the time being, we are staying cautiously optimistic and will keep a close eye on the market.

For resources and further information related to COVID-19, please visit our COVID-19 Resource Page.

Unemployment filings are at an all-time high due to the impact of COVID-19 on businesses and the economy. With so many people filing for unemployment during these unprecedented times, the government has made some modifications on the normal unemployment requirements. We’ve created a guide below to help you navigate through the changes of the unemployment requirements and how it can help you at this time.

We are continuously working on digesting information and updating our website with what we feel is the most relevant to our clients. Please visit one of our other resource pages below for more information.

EM Ford COVID-19 Employee Benefits Resource Page

EM Ford COVID-19 CARES Act/Small Business Resource Page

EM Ford COVID-19 Resource Page

With new information being released daily, we know it may be difficult to find the answers you are looking for during this time. There are so many sources of information out there, so we took some time to research all of them to provide you with quick FAQ fact sheet about your healthcare plan. If you have any questions, please don’t hesitate to reach out to EM Ford’s employee benefits team. We are here for you.

EM Ford is continuously working to digest information and update our website with what we feel is most relevant and helpful to our clients. Visit our comprehensive list of resource pages we’ve compiled below for more information.

EM Ford COVID-19 CARES Act/Small Business Resource Page

EM Ford COVID-19 Understanding Unemployment Resource Page

EM Ford COVID-19 Resource Page

The Coronavirus Aid, Relief, and Economic Security (CARES) Act has been rolled out to allocate $350 billion to help small businesses keep workers employed during the pandemic and economic downturn. We have summarized some key points from the US Chamber of Commerce’s Coronavirus Emergency Loans Small Business Guide and Checklist below.

There are guidelines that are still waiting to be released from the government, but in the meantime we wanted to have this out as a quick resource for you to reference if need be. To find out more about what the CARES Act could mean for your small business and for further updates, we encourage you to visit the US Chamber of Commerce’s website as well as the US Small Business Administration’s website.

Looking for other resources? Below is a comprehensive list of resource pages that EM Ford has compiled to break down information for you. We are continuously working to update our website with the most up-to-date information.

EM Ford COVID-19 Employee Benefits Resource Page

EM Ford COVID-19 Understanding Unemployment Resource Page

EM Ford COVID-19 Resource Page

We’ve rounded up some of the external resources we felt were most helpful in regards to the COVID-19 pandemic. There is a resource link image at the end of this page.

With information changing on a daily basis, we continue to update our website regularly so that our clients can have easily accessible and updated references. We’ve created additional resource pages that are linked below to target a few specific points that we feel are helpful guides to navigate you through this uncertain time.

EM Ford COVID-19 CARES Act/Small Business Resource Page

EM Ford COVID-19 Employee Benefits Resource Page

EM Ford COVID-19 Understanding Unemployment Resource Page

EM Ford COVID-19 Carrier Relief Efforts Resource Page

Keep calm and don’t cash out of your stock holdings.

Over the past few weeks, it’s no secret that we’ve seen large swings in the stock market. It’s also no surprise that these swings have been largely driven by the constant fear of COVID-19’s impact on the global economy. Although market observers have previously stated the market was overvalued and due for correction anyway, the unpredictability, strength and suddenness of this tumble has left even the most seasoned of investors with coronavirus concerns.

If recent volatility is causing you to consider cashing out of your stock holdings, it may be worthwhile to pause and put recent events into perspective, using history as a guide.

Since the turn of the millennium, the market’s negative response to health crises have been relatively short-lived. The table below shows the S&P 500 bouncing back at an average of 10.47% six months after early reports of a major outbreak. After 12 months, it rebounded by an average of 17.17%. Although there are no guarantees that the market will follow a similar pattern in this situation, it may be reassuring to know that over longer periods of time stocks regain their upward trajectory. This helps long-term investors who hold steady recoup their temporary losses, catch their breath, and continue to pursue their goals.

Homeowner’s insurance plays one of the most important roles in protecting your home from damage. Selecting the right coverage can not only help you rebuild after natural disasters and other unplanned damage, but can also protect your assets inside the home. Consumers sometimes face large increases in premiums, reduced or limited coverage, and non-renewal notices due to losses such as water damage claims. We’ve put together some tips for selecting an affordable homeowner’s insurance policy.