You might agree with me that talking about money and finances can be stressful, but it’s important to stay informed. So, given all that has been going on with COVID - the high unemployment numbers and the lifestyle changes - we thought we’d check in with a few experts about the economy and we thought you might be interested in hearing what they have to say.
Our quick takeaways:
- Markets have largely recovered from their mid-March lows, but long-term recovery is still uncertain (we’re still in a pandemic after all!)
- Governments have intervened in historic fashion to help us all cope by providing stimulus checks and other relief programs; small businesses like Piper and Dune included.
- Some good news… with record low interest rates a surplus of cash remains on the sidelines waiting to be invested. Now might be a good opportunity to teach your children, nieces and nephews about saving money and investing. With little ones you can start by teaching them about money. Get them excited, buy them a children’s wallet and bank to save their coins.
- Perhaps there’s a silver lining in this COVID economy for investors after all. We’ve heard the saying “buy low, sell high.”If you are thinking about investing, average investors have more information at their disposal than ever and the costs to trade are negligible. What does this mean? If you have some extra money to invest, anyone can get involved in public markets and more trades are taking place, so do your research and take advantage of the low stock prices!
- We’ve seen a consolidation of value in the largest companies. Amazon, Microsoft, Apple and others have the power to meaningfully change public policy, so keep your eye on this to watch what happens.
- Innovative technology companies are becoming more dependent on each other’s success. For example, with cloud technology and interdependent apps – a cyber-attack to one company could be a blow to many. This is not great news for consumer data which can be stolen from such an event.
- E-commerce is becoming the new normal. From telehealth to birthday gifts - there’s so much at your fingertips, why risk leaving your home? You can support small businesses like Piper and Dune and your favorite Main Street stores just as easily by shopping with them online.
- Many people are capable of living and working in the same location, full-time, if not with increased stress levels due to the close proximity of family members. Skills learned and preferences established in lockdown will not be quickly forgotten, and trends in place now may persist.
While it may seem like the economy looks bleak, this crisis highlighted the potential for the private sector to solve some of the world’s most difficult problems. In many countries, top scientists are working tirelessly to bring the public a vaccine. While nobody knows for sure, betting on best-in-class companies to engineer products and services of the future, in a world with or without the coronavirus, should continue to be a smart investment move in the long-term.
Sarah and The Piper and Dune Family
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