It’s been a seemingly never-ending stream of talking heads on CNBC the past few weeks forecasting and predicting what the economy and markets will do as a result of COVID-19. All of this conjecture reminds me of a scene in Moneyball where Billy Beane confronts his head scout about their inability to consistently identify top talent.
It's natural to have amplified emotions during times of crisis, and the COVID-19 pandemic is certainly a crisis. However, it’s important for investors to remove as much emotion from financial decision-making as possible. That's one of the roles of a financial advisor.
Context and perspective can be helpful. The current health crisis is serious, but does it compare with World War II? How about the Arab Oil Embargo? The catalyst is always different, but the resilience of capital markets is constant.