A History of Trust: Crews Banking Corporation

I wanted to write a note to you about the tremendous first quarter market volatility and the 20% S&P 500 Index decline. This “waterfall” decline was the worst since the 2008 Great Recession and was particularly unusual since the market was trading at an all-time high on Feb. 19. The COVID-19 pandemic is an unprecedented event elevating fear and uncertainty, but it is a transitory event for the markets and the U.S. economy. Meanwhile, we hope you please practice social distancing and stay safe.

The equity and fixed income markets are experiencing unprecedented volatility and fear about the coronavirus. This is a health crisis that has evolved into a financial challenge for policy makers as they attempt to suppress the spread of the virus while not closing down the economy entirely. Unfortunately, the only way to deter the spread of the virus is to reduce or close transportation and impose a quarantine. Since the only way we know to limit the number of infections is to reduce social interaction, we expect more states will join California, Illinois and New York in a “lock down.” For a historical comparison in 2009-2010 the H1N1 “Swine-Flu” virus infected 60 million Americans and killed 12,500, and yet the panic was not as prevalent.