Open Q&A Highlights - June 3

Benjamin Haas |

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.


(12:00) End

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