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What The Heck And What Now?

Wade Slome, CFA profile picture
Wade Slome, CFA


  • In the short run, it appears the worst is behind us.
  • However, we are in the middle of a severe recession with tens of millions unemployed.
  • Although Covid-19 has produced significant damage, don’t let fear and panic infect your long-term investment future.

The Covid-19 viral pandemic that hit our shores in early 2020 shut down the economy to a virtual halt, and unemployment has skyrocketed to an estimated 19%, as 30 million people have now filed for unemployment benefits over the last six weeks (see chart below). Shockingly, we have not seen joblessness levels this high since the Great Depression. All this destruction has investors asking themselves, “What the heck, and what now?

Forecasts for 2nd quarter economic activity (Gross Domestic Product) are estimating an unprecedented decline of -12% (see chart below) with some projections plummeting as low as -34%. Despite the dreadful freefall in the stock market during March, along with the pessimistic economic outlook, the major stock indexes came back with a vengeance during April. More specifically, the Dow Jones Industrial Average soared +2,428 points, or +11% for the month. The other major indexes, S&P 500 and NASDAQ, catapulted higher over the same period by +13% and +15%, respectively.

Certainly, there have been some industries hurt by Covid-19 more than others. At the top of the misery list are travel related industries such as airlines, cruise lines, and hotels. Retailers like Neiman Marcus (NMG-OLD), Pier 1 (PIR), and J.C. Penney (JCP) are filing for bankruptcy or on the verge of closing. Restaurants have also been pummeled (partially offset by the ability to offer pickup and delivery services), and entertainment industries such as sporting arenas, concert venues, movie theaters, and theme parks have all painfully come to a screeching halt as well. Let’s not forget energy and oil companies, which are battling for their survival in an environment that has witnessed oil prices plunge from $61 per barrel at the beginning of the year to $19 per barrel today (with a brief period at negative -$37… yes, negative!) –

This article was written by

Wade Slome, CFA profile picture
Wade W. Slome, CFA, CFP® is President and Founder of Sidoxia Capital Management, LLC and published author of How I Managed $20,000,000,000.00 by Age 32. In addition, Mr. Slome has been a media go-to resource as seen on CNBC and ABC News. He has also been quoted in the Wall Street Journal, USA Today, New York Times, Dow Jones, Investor's Business Daily, Bloomberg, Smart Money, among other media publications. Online, he is lead editor of the investment blog, InvestingCaffeine.com and a contributing writer to Morningstar, and Wall St. Cheat Sheet. Bloomberg identified him as the second youngest manager among the largest 25 actively-managed U.S. mutual funds in 2005. Besides his work at Sidoxia, Mr. Slome is an instructor at the University of California, Irvine extension department, where he teaches the Advanced Stock Investment course. Wade Slome holds an MBA from Cornell University with an emphasis in Finance. He earned a B.A. in Economics from UCLA. In addition, he holds the credentials of CFA (Chartered Financial Analyst) and CFP® (Certified Financial Planner). Mr. Slome managed one of the ten largest growth funds in the country ($20 billion in assets under management) at American Century Investments, and currently manages a hedge fund in addition to separate customized accounts for a selective client base at his firm (Sidoxia Capital Management, LLC) in Newport Beach, California.

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Comments (4)

itzik1160 profile picture
Thanks for interesting article. Fiscal Stimulus and zero rates since 2008 is not a good long term strategy to deal with the COVID-19 crisis
wald22 profile picture
Covid 19 = Corona 2019 model, which has been around way before it was discovered in 1930, but in 1930 a lot of people died from it, thus the discovery. The old Merk veterinary book has a lot about corona. It piggy backs shipping fever in animals, and now that the economy is ever more about transport of stuff, it piggy backs everything we transport. Everything that is being shipped is spreading the virus. But today's virus is not just corona it is corona with SARS spliced into it.

China got the same problem we had with the swine flu. It killed half of their pig population. China then imported female feeder pigs to rebuild its herd. Everyone of those pigs that went through Washington state to China died from shipping fever and the corona that piggy backed shipping fever. Once in China they went trough an auction barn and were moved to a number of people in the pig raising business. All of these pigs came right back to the auction barn and were resold because they were sick and the owners tried to recoup whatever they could. Most of those pigs were then slaughtered, even though they were not of slaughter seize. Many of them went to the wet market and slaughtered out in the open. This is how this all got started.

Party officials freaked out, tried to hide what happened for it would be a bad mark on China. They took what they learned from their past SARS problem and the information given to them by Harvard educated (proffessionals) idiots they had on their payroll. The idea being to treat corona with SARS medication by putting SARS into corona. This turned into a real disaster they have to cover up. It was one of the most stupid-iest thing ever done. The problem is it can't be undone.

The corona death rate has averaged 2.6% of all flu deaths since 1930. 2020 is a little higher because of the weather and air pollution enables the corona/SARS combination to spread faster and more widespread. Also shitty conditions and humidity (wetness) enables it to spread faster and more widespread.

Monetary Stimulus = The FED is member bank owned, and its purpose id to do everything possible to at least keep the value of debt, and if possible even increase it, for it is the bread and butter of the banking industry. Our debt is their asset.

Improving health care = Drain the sick people of whatever they have with costly procedures. If a piano falls on your head and you die from it, it is in the hospitals interest to have you listed as death by corona. We could cut the death rate of corona by simply doing with what we are doing with cattle and pigs. Give them better immunity by giving them Vitamin D shots, zinc and selenium. It works, I have used the cow medication on myself and because of it I am still vertical. If one wants to be in horizontal position just keep eating our junk food and stay inside where the sun can't shine on you. If allowed cattle will do everything possible to get as much sunshine as possible, because it kills corona, but SARS is a different animal. What we have now is a different, = SARS combined with corona. We either find a vaccine or most of us will get it and be self vaccinated as in herd vaccination. It will take two to three years. In the cattle business there is an 8 way vaccine that would work on humans, but nothing is 100%. Just because one gets the flu shot every year does not mean you will not get the flu.

What now = There is a need for civility. Debate without acting out or tweeting bullshit like Trump does. Banks use paper gold as a means to enhance the fraud on fiat credit lending, where credit has replaced our supply of money. Paper gold is the tool our banksters use to enslave humanity. China has the very same problem. 70%+ of the Chinese exports is made possible by our multinational corporations. We should not be blaming China for a problem we ourselves have created. We should be paying people to become self employed in self sufficiency. It now all comes down to doing it now or later when there is no other option. Trump is going to do everything possible to destroy this country, just like he has with his own companies. The only thing that keeps Trump afloat is the gold he inherited. Funny thing is that Mitch Mc Connell is that he has helped Trump to inflict damage on the American people. We are in a period much like it was in England during the upstairs downstairs time period. Things have to get so bad the the upstairs people lose everything before real change can take place. We are now entering that period.
No, the worst is not behind us. Unemployment still climbing. No, deaths are not on the decline. New daily death record on Friday.
Jeremy Robson profile picture
I think that now (after the rally) is the ideal time for fear and panic. This virus battle, as the Swedes keep telling us, is a marathon not a sprint and they are right. Th rest is just hopium.
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