We’ve known for a while that a recession was on the horizon. Many thought the staggering amount of student loan debt might trigger the market pullback. Then it looked like the collapsing oil and gas industry would be the downfall.
But who could have seen a world wide pandemic leading to quarantine, sickness, death, and a soaring unemployment rate rivaling the Great Depression? In 2009 it was entertaining to see the banks fail and greedy mortgage firms get what they deserved.
No one is to blame for the current situation we are in (except China). No one deserves to lose their business because of a virus. Unfortunately, like American households, many businesses live payroll to payroll, are overleveraged, and have little in reserve.
We will emerge from this, but sadly thousands of Americans will succumb to the COVID-19 virus. During times like this it is most important to take care of each other, support those on the front lines fighting this war, and be there for friends who suffer losses during this pandemic.
For those of us who remember September 11th, 2001, there are similar feelings of helplessness and fear. That day almost 3,000 Americans lost their lives in the span of a few hours as the event played out on morning television.
Getting back to normal wasn’t easy then. Even though the event occurred hundreds to thousands of miles away from most Americans, getting back to work made many feel a sense of guilt. But that is exactly what we have to do again.
We’re nowhere near normal, and the worst is probably still to come. Who knows when the millions of unemployed in the hospitality, cosmetology, retail, and entertainment industries will get back to work?
These events will have a lasting impact on this economy. Some of these workers won’t be called back. Even the fed with it’s never ending ability to print money, can’t cover this tab.
“I’ve Heard there’s going to be RECESSION.
I’ve decide not to PARTICIPATE!”
Like it or not, the recession is here. Every 10-15 years the bubble has to pop, or at least deflate. We’ve been patiently waiting and observing markets for the past year, and certain assets are about to go on sale.
No one was immune to this. There will be plenty of ethical opportunities to invest and restore businesses and assets during this downturn. We don’t have to feel guilty about getting up off the ground and getting back to work.
The window of opportunity may not be long this time. Many will argue that this economy was strong and that we will bounce right back. Others will say this bubble has popped and now the government has to find a new balloon to start overinflating.
Either way, we have our eye on a few select markets and are positioning ourselves to act over the next few years. Investment funds like ours will fuel the recovery like they always have. We look forward to the opportunity.