Coronavirus Update

March 12, 2020


Update - Our View on the Coronavirus


Dear Clients,


In our March 2nd letter titled “Our View on the Coronavirus”, we stated that continued concerns about the spread of the coronavirus into the United States would likely be the primary focus of the equity markets for the short-term.  This continues to be true today.  With the DJIA at 21,517 and the S&P 500 Index at 2,5221, down ~27% and ~25%, respectfully, from their mid-February 2020 intraday highs, uncertainty about the magnitude and duration of the negative economic impact to the U.S. and global economies is driving the stock market’s recent volatility.


The stock market is reminding all of us that stock prices don’t just go up.  Experiencing market declines are part of long-term investing.  That’s why it is so important to have a stated investment objective and corresponding portfolio that matches your risk tolerance and time horizon.


The questions mentioned in the March 2nd letter remain unanswered questions.  Will economic activity be impacted only in the first half of 2020, or longer?  How negatively will corporate earnings be impacted?  Overall, we continue to believe probable the impact is short-term.


So, as investment managers, where do we go from here?  We follow our mandate to maintain diversified portfolios with targeted asset allocations.  Doing so removes ‘emotional decisions’ and directs us to re-balance portfolios by buying into asset classes that are now under-weight (i.e. equities) and selling asset classes that are over-weight (i.e. fixed income).  A disciplined investment approach based on diversification, multiple asset classes, and periodic re-balancing will lead to the achievement of your long-term investment goals.



Ronald E. Miller                                             Terry W. Miller

Ronald E. Miller, CFP®                                              Terry W. Miller, CFA®
Managing Principal                                                      Chief Investment Officer                                                   


Footnote 1 - Stock Market Index 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