The Coronavirus Financial Shopping List
Apr 15, 2020
Although the Coronavirus has created plenty of hardships for our communities, from a financial perspective it’s also providing us with many opportunities. Isaac will give us some quick-hitting suggestions on today’s show for some investing moves you can think about making in the current market.
Here are just a handful of the things that we'll discuss:
THIS WEEK’S OFFER:
Transcript
Walter Storholt: Welcome to another edition of Wright Money Tips, the podcast that helps you prepare to get to and through retirement with common sense guidance and advice from Isaac Wright, Financial and Dynamics and Associates president, a Charter Financial consultant. I'm Walter Storholt filling in for John Stillman on today's podcast.
Walter Storholt: Isaac, we want to talk about the coronavirus financial shopping list. And everybody's probably making very detailed lists of what they need whenever they traverse out to the grocery stores right now and kind of battle... I mean, it kind of feels like you're going into battle when you go to the grocery store right now, like you've got to make sure you try not to touch too much, stay clean. We're going in, we're getting our list of things and we're getting out of there as fast as we can. Sort of the feeling that we have right now. So, let's see what's on our coronavirus shopping list. What are some of the investing moves that we can consider in this current market? I mean a lot of people are looking for opportunity now, Isaac. The fear is subsiding to some folks, and they're looking for opportunity. Are you seeing that as well?
Isaac Wright: Well, yeah, and I think whether the fear, and sometimes even as the fear escalates, you got many people that have really learned and have paid attention to people like Warren Buffett, Peter Lynch, just stalwarts that have discussed how to be able to take a long-term approach when it comes to investing. And so I'm hoping, I think some of the things I cover today for those of you here that are trying not to live a life of fear but may be more opportunity when it comes to the market and the conditions we're in. I think the first thing that I want to say on this shopping list when it comes to your investments and your financial plan is what I call shopping for that deep value proposition.
Isaac Wright: So, what I'm saying here is basically good, high-quality companies that have strong balance sheets, they may be experiencing short-term pain. I mean of course, obviously, everything has been experiencing pain and almost just being beat down no matter what industry they're in. Some worse than others, granted, but may be having a huge pain point in their stock price but not necessarily reflecting upon the type of company they are. Again, more on the mid- to long-term.
Isaac Wright: And then also, too, looking at some of the dividend yields that the companies are able to pay based upon that strong balance sheet. So the days of maybe not looking at value plays has come to roost. And so this is a scenario that we've looked at quite frankly, our portfolio managers look at, and our team. So if you have any concerns that relates to your investment portfolio and trying to figure out if it makes sense to have somebody look over your shoulder, give us a call here, (804) 777-9999. Or you can text the word help. So either way, we're here to quote unquote help you.
Walter Storholt: Isaac sent me this shopping list before the show today. So yeah, deep value number one on there and that makes a lot of sense, Isaac. Look for the folks who are well positioned long-term, just experiencing some short-term temporary pain here.
Walter Storholt: You also put on here new habits. And I guess you're looking for habits that have maybe been formed during this crisis that are going to stay in place for a while. Like maybe more companies are going to realize that, "Hey, we can work from home."
Isaac Wright: Well yeah, so if you kind of put this in a metaphor, when you go to the grocery store, you may have gotten into a habit of not only just going down to your normal grocery store, going down the normal aisles, and picking a couple of candy bars, when you get to the checkout line. There may be a scenario now when you go into the grocery store that you realize based upon all the hoopla that's been going on, that you have become more streamlined. You may have only been able to hit certain aisles and just trying to get in and out and not getting the extra curricular food and candy when you get to the cashier line.
Isaac Wright: Now I know that sounds a little silly, but let me just say this, it's not. Think about how you've acted over the last several weeks, if not months now, and new habits are the same situation when it comes to your investments. You also want to be able to look at, "Hey, do I have a financial strategy of how to choose the right companies?" Or a strategy of how to be able to manage a portfolio versus just owning a mutual fund. These are going to be ideas that will permeate, I think, people that are going to be successful in what I call the aftermath of where we're at today. So the new habits of where we're at as far as changing consumer behaviors, what companies may be in a better position versus other companies, and not necessarily just going in and buying an index. That could also be a very advantageous habit.
Isaac Wright: I just... I don't want to run off too long here, but I think everybody understands what I'm saying is don't go right back to the same old, same old. I don't know if that's going to work here in what I would call kind of the new economy and new direction we're likely going to be in for awhile.
Walter Storholt: And that's a great point, Isaac. And I think as well, Isaac, you put on this shopping list, consumer staples. I mean the things that are going to still always be there no matter what crises we go through as a country.
Isaac Wright: Yeah, Walter. Again, this is not a long-winded show or segment. This is just simply saying, if you think about where stock prices have gone specifically with certain pharmaceutical companies, you've got grocery stores that are making headway, Amazon, Walmart, all of those again have been a good investment per se relative to where the market's been.
Isaac Wright: Will this continue as a long-term trend, however? Do you think that this, let's call it 6, 12, 24 month period when things get back to normal or let's call it a relatively progression towards normal, do you think maybe you'll find some great opportunities to own stocks that had just been beaten down that are not the forefront stocks is what I call them? So that's another opportunity that I think can be overlooked a lot of times because you're so focused on what's going on today that you're not able to see that 6, 12, 24 month horizon. And it's good to maybe have a basket of companies, a basket of stocks or even utilizing money management teams that understand that as well. And that's what we bring to the table here.
Isaac Wright: So for all of you, whether you listen to my radio show, the podcast, a combination of both, this is important that you start thinking about how to be able to put some measures of positivity around the situation we're in now and really say, "I'm going to take the bull by the horns," and take some advantage of what I've covered today. Because this is the time to potentially make up, make money, get back to where you were, if not better. And so just don't hunker down and go underneath the sheets.
Walter Storholt: I think that's a great way to put it, Isaac. Don't stick your head in the sand. Don't be the ostrich. Be proactive here. Make choices that better your financial plan and situation. And if you need help, you need guidance, Isaac's there for you here in the greater Richmond area. Again, you can call (804) 777-9999. Or text the word help to that number to get in touch and just start the conversation about getting your financial plan in place.
Walter Storholt: You don't have to have all your statements and all those things pulled together right now. Just call or text if you need some help and guidance through not only the coronavirus situation that we're here right now talking about and the financial fallout from that, but of course looking into the future, preparing to stand against the next crisis and to benefit from the eventual... It will come back, the market and the economy, we will be back on the upswing. And you want to be able to have a good plan for that side of things, too. It's not all about being prepared for the downs. We need to be prepared for the ups as well.
Walter Storholt: Call or text, (804) 777-9999 is the number. Get in touch today while it's on your mind. Be proactive, (804) 777-9999. And Isaac will put aside time to have a conversation with you and a complimentary review of your situation. Of course, can meet remotely during these times of social distancing, that's totally fine as well. We're also online @wrightmoneytips.com. That's where you can listen to past episodes of the show and get more information, wrightmoneytips.com. That's Wright, with the letter W in front, moneytips.com. And you can find links and resources and everything you need in the description or the show notes of today's episode as well.
Walter Storholt: For Isaac Wright, I'm Walter Storholt. We'll talk to you next time, right back here on the Wright Money Tips podcast.
Announcer: Information is for illustrative purposes only and does not constitute tax, investment, or legal advice. Always consult with a qualified investment, legal, or tax professional before taking any action.
Announcer: Advisory services offered through J.W. Cole Advisors, Inc., JWCA, Financial Dynamics and Associates, Inc., and JWCA are unaffiliated entities.
Walter Storholt: Isaac, we want to talk about the coronavirus financial shopping list. And everybody's probably making very detailed lists of what they need whenever they traverse out to the grocery stores right now and kind of battle... I mean, it kind of feels like you're going into battle when you go to the grocery store right now, like you've got to make sure you try not to touch too much, stay clean. We're going in, we're getting our list of things and we're getting out of there as fast as we can. Sort of the feeling that we have right now. So, let's see what's on our coronavirus shopping list. What are some of the investing moves that we can consider in this current market? I mean a lot of people are looking for opportunity now, Isaac. The fear is subsiding to some folks, and they're looking for opportunity. Are you seeing that as well?
Isaac Wright: Well, yeah, and I think whether the fear, and sometimes even as the fear escalates, you got many people that have really learned and have paid attention to people like Warren Buffett, Peter Lynch, just stalwarts that have discussed how to be able to take a long-term approach when it comes to investing. And so I'm hoping, I think some of the things I cover today for those of you here that are trying not to live a life of fear but may be more opportunity when it comes to the market and the conditions we're in. I think the first thing that I want to say on this shopping list when it comes to your investments and your financial plan is what I call shopping for that deep value proposition.
Isaac Wright: So, what I'm saying here is basically good, high-quality companies that have strong balance sheets, they may be experiencing short-term pain. I mean of course, obviously, everything has been experiencing pain and almost just being beat down no matter what industry they're in. Some worse than others, granted, but may be having a huge pain point in their stock price but not necessarily reflecting upon the type of company they are. Again, more on the mid- to long-term.
Isaac Wright: And then also, too, looking at some of the dividend yields that the companies are able to pay based upon that strong balance sheet. So the days of maybe not looking at value plays has come to roost. And so this is a scenario that we've looked at quite frankly, our portfolio managers look at, and our team. So if you have any concerns that relates to your investment portfolio and trying to figure out if it makes sense to have somebody look over your shoulder, give us a call here, (804) 777-9999. Or you can text the word help. So either way, we're here to quote unquote help you.
Walter Storholt: Isaac sent me this shopping list before the show today. So yeah, deep value number one on there and that makes a lot of sense, Isaac. Look for the folks who are well positioned long-term, just experiencing some short-term temporary pain here.
Walter Storholt: You also put on here new habits. And I guess you're looking for habits that have maybe been formed during this crisis that are going to stay in place for a while. Like maybe more companies are going to realize that, "Hey, we can work from home."
Isaac Wright: Well yeah, so if you kind of put this in a metaphor, when you go to the grocery store, you may have gotten into a habit of not only just going down to your normal grocery store, going down the normal aisles, and picking a couple of candy bars, when you get to the checkout line. There may be a scenario now when you go into the grocery store that you realize based upon all the hoopla that's been going on, that you have become more streamlined. You may have only been able to hit certain aisles and just trying to get in and out and not getting the extra curricular food and candy when you get to the cashier line.
Isaac Wright: Now I know that sounds a little silly, but let me just say this, it's not. Think about how you've acted over the last several weeks, if not months now, and new habits are the same situation when it comes to your investments. You also want to be able to look at, "Hey, do I have a financial strategy of how to choose the right companies?" Or a strategy of how to be able to manage a portfolio versus just owning a mutual fund. These are going to be ideas that will permeate, I think, people that are going to be successful in what I call the aftermath of where we're at today. So the new habits of where we're at as far as changing consumer behaviors, what companies may be in a better position versus other companies, and not necessarily just going in and buying an index. That could also be a very advantageous habit.
Isaac Wright: I just... I don't want to run off too long here, but I think everybody understands what I'm saying is don't go right back to the same old, same old. I don't know if that's going to work here in what I would call kind of the new economy and new direction we're likely going to be in for awhile.
Walter Storholt: And that's a great point, Isaac. And I think as well, Isaac, you put on this shopping list, consumer staples. I mean the things that are going to still always be there no matter what crises we go through as a country.
Isaac Wright: Yeah, Walter. Again, this is not a long-winded show or segment. This is just simply saying, if you think about where stock prices have gone specifically with certain pharmaceutical companies, you've got grocery stores that are making headway, Amazon, Walmart, all of those again have been a good investment per se relative to where the market's been.
Isaac Wright: Will this continue as a long-term trend, however? Do you think that this, let's call it 6, 12, 24 month period when things get back to normal or let's call it a relatively progression towards normal, do you think maybe you'll find some great opportunities to own stocks that had just been beaten down that are not the forefront stocks is what I call them? So that's another opportunity that I think can be overlooked a lot of times because you're so focused on what's going on today that you're not able to see that 6, 12, 24 month horizon. And it's good to maybe have a basket of companies, a basket of stocks or even utilizing money management teams that understand that as well. And that's what we bring to the table here.
Isaac Wright: So for all of you, whether you listen to my radio show, the podcast, a combination of both, this is important that you start thinking about how to be able to put some measures of positivity around the situation we're in now and really say, "I'm going to take the bull by the horns," and take some advantage of what I've covered today. Because this is the time to potentially make up, make money, get back to where you were, if not better. And so just don't hunker down and go underneath the sheets.
Walter Storholt: I think that's a great way to put it, Isaac. Don't stick your head in the sand. Don't be the ostrich. Be proactive here. Make choices that better your financial plan and situation. And if you need help, you need guidance, Isaac's there for you here in the greater Richmond area. Again, you can call (804) 777-9999. Or text the word help to that number to get in touch and just start the conversation about getting your financial plan in place.
Walter Storholt: You don't have to have all your statements and all those things pulled together right now. Just call or text if you need some help and guidance through not only the coronavirus situation that we're here right now talking about and the financial fallout from that, but of course looking into the future, preparing to stand against the next crisis and to benefit from the eventual... It will come back, the market and the economy, we will be back on the upswing. And you want to be able to have a good plan for that side of things, too. It's not all about being prepared for the downs. We need to be prepared for the ups as well.
Walter Storholt: Call or text, (804) 777-9999 is the number. Get in touch today while it's on your mind. Be proactive, (804) 777-9999. And Isaac will put aside time to have a conversation with you and a complimentary review of your situation. Of course, can meet remotely during these times of social distancing, that's totally fine as well. We're also online @wrightmoneytips.com. That's where you can listen to past episodes of the show and get more information, wrightmoneytips.com. That's Wright, with the letter W in front, moneytips.com. And you can find links and resources and everything you need in the description or the show notes of today's episode as well.
Walter Storholt: For Isaac Wright, I'm Walter Storholt. We'll talk to you next time, right back here on the Wright Money Tips podcast.
Announcer: Information is for illustrative purposes only and does not constitute tax, investment, or legal advice. Always consult with a qualified investment, legal, or tax professional before taking any action.
Announcer: Advisory services offered through J.W. Cole Advisors, Inc., JWCA, Financial Dynamics and Associates, Inc., and JWCA are unaffiliated entities.
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