News & Economic Updates
Special edition March 2020
The long-dreaded bear market is upon us
Businessman against black bear on red arrow downward trend line with sky cityscape background. Fight back bearish market concept.
The longest-running bull market just officially came to an end, with single-day drops today of 5.86% and 4.89% in the Dow Jones and S&P 500 indices respectively. After 11 years of stock market growth, we now find ourselves in a bear market (defined as a 20% decline from the markets’ highs). So what does that mean for you as an investor?

You hear it from us all the time: Don’t panic. Stick with your long-term investment strategy. The markets have always recovered eventually.

But we would like to offer a few detailed pieces of advice that are specific to the current environment.

  • As you consider how to proceed with your investments, remember that many of the underpinnings of the economy were encouragingly strong, prior to the sudden bad news of the coronavirus and the oil trade dispute between Russia and Saudi Arabia.
  • Bond yields are at historic lows (.72% for the 10-year Treasury note!), which makes bonds a lackluster alternative to stocks. At the moment, if you have some cash sitting around that you would like to invest, we recommend high-dividend stocks or mutual funds, such as Verizon, IBM or any of the high-grade utilities.
  • Stay alert for signals from our leadership about any plans they do (or don’t!) have for the economy and financial markets. We had hoped to hear some solutions or proposals by now, and as we write this newsletter, we know there is a press conference scheduled for this evening. Some tax relief would probably inspire a redirection in the stock markets, at least in the short term. We look forward to hearing some news.

As always, call us with questions or concerns at
3 03-228-3160.

If this is your first exposure to the GRAnderson Wealth Monthly Update -- welcome! We hope you receive a valuable amount of information that will help with your investment decisions!

Gregory Anderson
Founder and CEO