Ann Sterling:
It is now time for 4 Your Money. We are joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.

David Nelson:
Thank you. Appreciate it, Ann.

Ann Sterling:
We need you at this time, because we’re really talking about the coronavirus and what it’s doing not only to the global economy, but the economy right here in the United States.

David Nelson:
Yeah, the impact is going to be felt for years, and it’s been very significant as far as what’s already taken place. And again, I don’t want to discount anything. We’re talking about human beings and what have you. My job, obviously, is focusing on the money aspects and the impact that it can have, and that space. And it’s dramatic, and it’s going to continue to be dramatic. We don’t see this thing ending for quite some time.

David Nelson:
And I brought along a slide. And this one I’ll just walk people through. It’s fairly simple once you kind of get the idea. The key is, are we in a recession? So this is assuming that we’re not in a recession, so a non-recession bear market. And the bear market’s defined as a 20% or greater drop, which is what we’re in. So the average is 23% in that period of time, and it lasts 224 days.

Ann Sterling:
Wow.

David Nelson:
So these aren’t quick. They last for a while. Now, if we’re in a recession… and I’m betting that we are, and I’m betting the world is in a recession right now… the drop happens to be in the neighborhood of 35 – 36% average. And try this on for size: 517 days. This is serious stuff. This is what happens as far as when people invest. But this time it’s a little different because of this event that we’re dealing with. Never mind just the economics here. It’s the ripple effect of this disease that’s impacting this thing in a massive way.

Ann Sterling:
Let’s talk about the financial markets, because every single day when you turn on the TV and you’re looking at it, it’s really a roller coaster. So are we going to continue to see a roller coaster?

David Nelson:
If history repeats itself… and I think it will, as far as in this situation… it’s going to continue for a long time, and it’s going to continue at the levels that we’ve seen. In other words, they won’t be 1% moves. They’re going to be 3’s and 5’s and 10% moves, as far as per day.

David Nelson:
Till we can sort out as far as what this is going to need… And companies are trying to figure out as far as how this is going to impact as far as their financials. Nobody really knows for sure at this point in time. And so with all the uncertainty, the market is reflecting that, not just in the stock market but in the bond market.

David Nelson:
And so because of the two, again, people should be very cautious at this point in time. Don’t run for the hills if you haven’t already, but the bottom line: Don’t be a hero at this point in time either, as far as diving in with a whole bunch of money.

Ann Sterling:
Are you speaking to investors specifically, or is that the same advice you would have for investors?

David Nelson:
That would be the advice that I would have for the investors out there, that you don’t want to be greedy at this point in time. It’s probably not the time to be. I can’t give specific advice, obviously, to every individual; but for most individuals, the best answer at this point in time is be patient. This is going to be with us for quite some time.

Ann Sterling:
David Nelson, thank you.

David Nelson:
Thank you, Ann.

Ann Sterling:
If you missed any of this, we’ll make it available to you right there on OurQuadCities.com.