Open Q&A Highlights - June 3
Open Q&A June 3, 2020
Listen to the discussion here
Transcript highlights below:
Intro (0:00 – 0:30)
(0:30) Opening it up for discussion
(1:15 – 5:30) The market is very disconnected from the world that we live in right now.
- Surprising that market shrugged off everything going on in the world right now
- Part of massive drawdown in March was reversed through April and May regardless of very bad economic news.
- “In the short-term, the market is a voting booth. In the long-term it’s a weighing station.”
- Historical context - parallels to 1968
- Influenza claimed 100,000 US lives
- Riots in the streets and college campuses
- Civil Rights movement was in focus (MLK was shot)
- Black Power at Olympics
- Space program
- Political unrest in election year (Johnson said he wouldn’t run again – RFK was shot and killed on 6/5) Nixon wins
- Vietnam tensions (vs. China)
- Yet, stock market was up 12.5% in 1968.
- Was a different time with the media, but assume daily headlines weren’t good then either but market moves along, and we stick to the plan
(5:30 – 7:30) China - US Tensions. What role will they play?
- We dealt with a certain degree of market volatility in 2018 and again in parts of 2019 (seems so distant now) because of trade wars and trade deals and market did react
- It is an election year. But he can’t afford an all-out war to further risks economic hurdles.
- Hong Kong territory doesn’t exactly export a lot of goods to the US, so what’s the real economic impact? Very little.
- I’m not going to speculate to what degree comments and issues are political posturing vs. strong lines. Time will tell
(7:30) Clarification on HFG events for next week & office reopening
- Chamber presentation on Business Continuity Planning on Monday, June 8 at 9am
- Open office hours will continue on Wednesday, June 10 at noon
- Open to everyone in addition to regular communications
- Ben is in the actual office, but we have embraced technology before closure and have been working from home seamlessly.
- Will be in the office should face-to-face interactions need to occur.
Tracking # 1-05018338