Capital Advisory Group - May 2020

A HISTORICAL PERSPECTIVE: The Stock Market Before, During, and After Pandemics

swine flu, and MERS) and their effects on stock market behavior, the S&P 500 was positive in 11 of the 12 cases for the six-month period following the start of each outbreak.The average price return was 8.8%. In 9 of the 11 cases, the 12-month change of the S&P 500 index following the start of the pandemic was positive, with an average price return of 13.6%. For most of the cases, an initial dip in the market at the time of the outbreak precipitated an eventual rise six and 12 months out. As this data shows us, being in it for the long term is typically the best strategy. It’s impossible to know exactly what will happen in the coming years and months, and each situation is different. It’s also easy to feel panicked and react accordingly. But looking at historical data from similar situations can remind us that as bad as things can feel, they do bounce back.We do recover from setbacks, and we will rise again. As quickly as this all happened, it will subside, and in the meantime, we are here for you. Reach out to us and let us know how we can help you.

A global event like the one we are experiencing currently with COVID-19 causes us to change our routine behavior. Instead of meeting with friends for dinner, we set up a Zoom call and have a virtual dinner date. Instead of going to a concert, we might rock out to the band’s livestream online. Of course, as our behavior changes, there are ripple effects for our society. When it comes to the stock market, it’s easy to expect the worst. While it’s impossible to predict the overall financial impact COVID-19 will have, it can be helpful to look at what we do know: the stock market’s performance through several of the world’s previous pandemics and outbreaks. According to a graph put together by First Trust, which looked at 12 pandemics over the last 40 years (including SARS, Zika, bird flu,

TAKE A BREAK

GRILLED PRIME RIB

Who says the cookout has to ruin your diet? Try this paleo-friendly recipe for a main dish that’s worthy of your next barbecue.

Directions

1. Take rib roast out of the refrigerator 30 minutes prior to grilling. 2. Season roast with salt and pepper and allow it to rest for 10 minutes while you heat a gas grill to 600 F. 3. Sear roast for 3–4 minutes on each side. 4. Turn off the grill but continue cooking the steak, flipping every 4–5 minutes, until it reaches an internal temperature of 125 F. Remove from grill. 5. Allow the roast to rest — its internal temperature will continue to climb — for 5–10 minutes. Slice and serve.

Ingredients

• 1-1/2 lbs beef rib roast • 1 tsp Himalayan salt • 1/2 tsp black pepper

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Inspired by Primal Palate

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