April Coronavirus Update

April 6, 2020


Coronavirus Update #3


Dear Client,


Market Update

Monday, April 6, signs that the coronavirus outbreak may be peaking or leveling off in Italy, Spain and New York and reports of a continued recovery in China spurred a stock buying frenzy.  The Dow Jones Industrial Average soared 1,627 points, or 7.7%, its best day since March 24.  The S&P 500 and Nasdaq were each up more than 7%.1   This surprising move to the upside illustrates the potential speed by which equity markets may recover and the importance of sticking to a long-term investment plan.

Were equity buyers too optimistic today?  Were equity sellers too pessimistic in late February and March?   Perhaps the answer is “yes” to both.  Looking forward to the coming weeks, headlines news for new unemployment claims and the jump in the unemployment rate is likely to be very bad.  While it is impossible to know how many jobs will be lost or what the ultimate impact will be on U.S. economy, we continue to believe the impact will likely be short-term.

As the U.S. and other countries around the globe work through the COVID-19 ‘shock’, stock markets will almost certainly remain volatile.  However, COVID-19 will pass.  It is very, very likely an effective vaccine will be available within the next 12 months.  And with its passing, history has taught us that bull markets follow bear markets, and bull markets almost always last longer with moves of greater magnitude than the bear market decline.  To reiterate our message from the March 12th Update, as a disciplined investment manager we follow our mandate to maintain diversified portfolios with targeted asset allocations.  It is an approach that best positions your portfolio to benefit from the coming economic recovery.     

Office Operations

In compliance with Governor Pritzker’s Order, we are conducting normal business activity in a “work-from-home” environment.  All office employees are available during normal business hours and can reached by calling 217-542-7700.  Our office technology for conference calls and video conferences is also available if you would like to meet via one of these communications channels.

As always, please call us if you have any questions or concerns.


Terry W. Miller                 

Terry W. Miller, CFA®                                                

Chief Investment Officer


Footnote 1 - Stock Market data obtained from Charles Schwab & Company.  The Schwab Center for Financial Research ("SCFR"), a division of Charles Schwab & Company, sources information from third-party providers and is believed to be reliable, but its accuracy or completeness is not guaranteed.