Finance/Children

Stock Market after the coronavirus

Hey Taylor There’s clearly a lot going on and I’m trying to see if I can filter out some of the noise. Taylor With this virus Kovar spreading, how much of what’s happening is an overreaction, especially when it comes to the market? - Eric

Hey Eric - This seems to be the question on everyone’s mind - are we taking the right steps and what’s the end game? I wish I could give you a clear answer, but this is uncharted territory, which is the primary cause of all the panic.

With regard to the stock market, the strong swings are unfortunate but not too surprising. With a large percentage of investors reacting more to market moves than the industries pushing the needle, we always have to deal with an element of overreaction. However, as illustrated by the two rate drops with little positive impact, the normal tricks for boosting investor confidence aren’t really working.

What we’re seeing right now, and will continue to see for presumably the next couple months, are supply and demand issues that haven’t influenced the market in a long time. First it was a disruption in global supply from China, then other countries quarantined and compounded those supply problems, and now we have rushes on inventory and everyday consumers socially isolating. Enticing interest rates can usually get people to spend more, but when goods aren’t available and health officials are advising against human contact, that urge to spend drops significantly.

That said, the market and the companies that drive it will weather the storm. This isn’t great timing for anyone just entering retirement, but no one should be doing anything crazy with their IRA. I understand the feeling you get in the pit of your stomach when your net worth drops by a big percentage, but there’s an end to the financial portion of this crisis. When it comes to your health, you should be taking every precaution available to you. As for your retirement account, take a deep breath and wait it out.

To address the health angle, the measures being taken might seem extreme and perhaps, in hindsight, we’ll feel that they were. However, it seems that a novel virus spreading at this rate should concern everyone; upending our lives with school, events, and restaurant closures in the short term will help us get back to healthier days with fewer lasting problems.

I’m erring on the side of caution with this situation. That means less socializing and more handwashing, and it also means leaving market accounts alone and investing more as prices fall and fluctuate. We might not be able to see it yet, but there’s a light at the end of the tunnel. Take care!

Taylor was raised by good ol' blue-collar workers and following in their footsteps led him to take on massive debt at a very young age. It didn't take him long to realize having debt wasn't his cup of tea, and he worked his tail off so he could enjoy financial freedom and independence. As an entrepreneur and financial professional, his work has been quoted and published in a variety of different media on topics such as financial management, budgeting, saving, business, investing, and more. Read more about Taylor at GoFarWithKovar.com

Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.

John Rosemond

Vital to a child’s sense of well-being are parents who act competent to provide adequate provision and protection under any and all circumstances.

I often refer to that obligation as “acting like a superior being.” It requires, under the most trying circumstances, keeping one’s cool, projecting a sense of having it all together, not letting emotion (yours or your child’s) take over, being proactive, having and being able to communicate a plan. In short, embracing the legitimacy of one’s authority as a parent.

Some parents, perhaps most, think of authority simply in terms of the discipline of children. That is indeed one of the functions of a parent authority figure, to discipline with calm purpose. Equally if not more important, however, is to always broadcast an aura of competence. The popular World War Two British adage, “Keep Calm and Carry On,” expresses the nature of said aura in a proverbial nutshell.

When that quality is absent a parent’s demeanor, a child’s predictable reaction ranges over a finite list of malfunctions, from depression and anxiety to raging misbehavior. Intuitively, children know they can’t deal with the world, in all of its complexity and unpredictability, on their own. They need people who are BIG in every sense of the term to deal with it on their behalf. When those people fail to act up to the job of being BIG, twenty-fourseven, it throws children into a tizzy. The tizzies provide mental health professionals with a living, fodder for the justification of largely meaningless testing, diagnoses that have no scientific basis, and medications that don’t reliably outperform placebos. Unfortunately, the tizzies are a large part of yours truly’s raison d’etre. America is facing a crisis at the moment. No one knows for sure where this is headed, how long it will last, or how much it’s going to change for the long term our collective way of life. For parents, the crisis requires keeping calm and carrying on. Calming a child’s potential emotional reactions is only possible if one’s own emotions are under complete control. It would be unfair to suggest that having emotions in a crisis is a sign of parental weakness. Go ahead, have emotions. Just keep them under opaque wraps when kids are around.

“When and how should I tell my children about the coronavirus?” is the question I am most frequently and urgently asked these days. I answer, “When they ask questions.” An unsolicited homily is likely to provoke rather than subdue anxiety.

When questions are asked, keep it short and sweet, as in, “Mom and I have this under control. We have plenty of food and we’re staying indoors or in our own back yard as much as possible to reduce the chance of getting sick, but even if one of us gets sick, it’s probably going to be nothing more than a runny nose, sneezing, and maybe a slight fever, like a bad cold. We’re all healthy people. In any case, we’re going to take care of you. You’re our first priority. Any other questions?”

At some point, one may need to say, “That’s enough questions. What are your plans for the day?” Knowing when to end a conversation of this sort is being a BIG person, the adult in the room.

Family psychologist John Rosemond: johnrosemond.com, p arentguru.com.

John Rosemond has worked with families, children, and parents since 1971 in the field of family psychology. In 1971, John earned his masters in psychology from Western Illinois University and was elected to the Phi Kappa Phi National Honor Society.

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COVID-19 affecting local businesses

On Thursday, Texas Governor Greg Abbott issued an executive order limiting social gatherings to 10 people, prohibited eating and drinking in restaurants and bars while allowing takeout, close gyms, ban people from visiting nursing homes except for critical care, and temporarily close schools. The executive order is effective midnight Friday through midnight April 3, Abbott said.

Upon order, Howe’s dine-in restaurants adhered to the order and became takeout only. The bank has gone to drive-thru service with appointment only lobby times. City Hall is drive-thru only and the Howe EDC/Chamber office is open by appointment only. The prolonging of the pandemic will surely play a lasting role businesses all over the country.