Dear Friends and Clients,
As a follow up to our conference call with BlackRock Funds, I am happy to attach a copy of the call for you to listen to again if you would like to, or if you did not get a chance to listen on Friday. The comments from our speaker, Blackrock Funds Director and Product Strategist Dan Coppens, are still very relevant. We were pleased to learn that over 140 people decided to join the conference.
A few takeaways from Dan were:
Although the market staged a historic three day rally last week, there is still some selling that needs to take place in the market in order for a firm bottom to be established (Translation: we are not out of the woods quite yet)
The bond market has seemed to calm down, and liquidity and yields are beginning to return to normal.
The biggest concern right now is if the economy will fall into a deep recession before the virus peaks, causing the bounce back to be longer and more difficult. Ideally, the virus will hit its apex before the economy tips over.
The Federal Reserve is buying $75 billion in bonds across the spectrum on a daily basis. This is unprecedented action on their part.
Over the past six weeks investors have parked $286 billion in money market funds waiting to be redeployed into the market.
When the opportunity presents itself, we will arrange a new call down the road. In the meantime, please feel free to contact us with any questions.
Sincerely,
Michael Hartzman, CFP
Lebenthal Financial Services, Inc.
516-349-5555
Dominick Tavella
516-785-1800