Investing for Uncertainty

Bob Crew, Fritz Wood |

Imagine it is January 2020. The economy is purring like a content kitten. Unemployment, interest rates and inflation are running at historically low levels. And then, a global pandemic rocks our lives and the financial markets. By the end of March, the S&P 500 drops nearly 20% in value. Then, later in the year and in unprecedented time, a COVID vaccine is found, and the markets roar back, making up all the losses and posting a gain for the year.

Meanwhile:

  • FAANG stocks (Meta Platforms, Amazon, Apple, Netflix and Alphabet) soar before giving up a lot of gains.
  • Meme stocks (Remember Gamestop?) shoot up and then fall.
  • Bitcoin and other cryptocurrencies jump to record highs and then crash.
  • Inflation races to the highest levels most of us have experienced.
  • Russia invades Ukraine, and geopolitical uncertainty intensifies.
  • U.S. energy policy shifts on a dime, and gas prices soar.
  • The Federal Reserve raises interest rates seven times in 2022.

Could you have predicted all that back in December 2019? Did anyone? What if you or someone had? What would you have done?

Learn more in our latest article in Today’s Veterinary Business. Click here to read it.