Navigating The Market During These Unprecedented Times

BY November 1, 2020
Capital Wealth Advisors executive team: Lewis Johnson, President & CEO William Beynon, Joe Moglia, Blaine Ferguson, Kyle Cerminara

Covid-19 has had an enormous impact on the economy. Even after a strong bounce back in the third quarter, it is still well below pre-Covid levels. Our research team believes it will be a difficult, long road to full recovery. Especially during these unprecedented times, it is important to review the following considerations as you make investment decisions.

The stock market impact of COVID-19 has been somewhat counter-intuitive, given that almost all of the initial losses have been recouped. We believe that, as long as the government responds appropriately, the worst may be over for the markets for now, albeit not for the economy. However, different sectors are and will continue to respond very differently. 

The pandemic has accelerated trends already in place such as working from home, tax flight from high tax areas and the like.  Conversely, it has been very hard on travel, tourism and other leisure activities.  The response and impact have not been uniform throughout the world.  We are seeing more opportunities internationally than we saw before the pandemic.  Covid-19 has certainly been accelerating the process of creative destruction, but our research team believes that change creates opportunity.  

We are witnessing what may be the worst political unrest in many generations. What does the election mean for your investments? How are you approaching the markets during what many fear could be a volatile time? We believe an asset allocation strategy that includes a mix of gold, equities, and higher quality bonds can offer an effective plan of action.

Related to the real estate market, we are seeing news reports about the exodus from cities and the rise in single-family home ownership seemingly brought about by the pandemic. What are some of the hidden factors that may be driving a powerful real estate cycle?

It is important to know where we are in the cycle, and what to look for when investing in foreign equities. For example, if the dollar stops strengthening after a 10-year run, should international equities be considered?

While our financial advisors at Capital Wealth Advisors can’t predict the future, our research has an informed framework to guide our wealth management clients to what we believe is a better mix of assets as the cycle changes. Our research team’s philosophy is to not “set it and forget it” but rather to help our clients adjust investments to changing circumstances. Our dedicated financial advisors customize our team’s research to each individual client’s needs and to address the changing opportunities that the economic cycle presents and that market volatility makes possible.

For information on how Capital Wealth Advisors can assist you, visit capitalwealthadvisors.com or call (239) 434-7434.

Join us for our free monthly Market Happy Hour webinars when our research team reviews the important market events of the month and discusses the economic and global drivers that we believe are moving the markets. To register, visit capitalwealthadvisors.com/register/

Headquartered in Naples, Capital Wealth Advisors advises on over $1.6 billion in assets for clients in 40 states. Recognized by the Financial Times as one of the top 300 RIA’s in the U.S. (2019 & 2020) and by Inc. Magazine as one of the fastest growing private companies in America (2017-2020).


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