NetWorth Radio Advance Report - March 23, 2020

In this NetWorth Radio Advance Report, Spencer McGowan, President of McGowanGroup Asset Management, delivers financial news and intelligence with insights you can act on for March 23, 2020.

Advance Report

Radio Show

COVID 19 Update – March 18th, 2020

Our prayers for you and your family during this national emergency. We stand determined to help you navigate through the current crisis to success.
A temporary global near shut down has occurred and within the U.S. at least a 2-week partial shut-down is taking place to weather, the estimated incubation period of the COVID-19 virus. The near national, voluntary shut-down also means that the Real Estate and the Financial Markets are, we believe, deeply and unreasonably discounted.

Financial Impacts

Financial assets have experienced the shortest and most severe 30% Bear Market drop in modern history.
If you decided to list and sell real property or any real estate at this moment, if the property could be logistically converted to cash, the property would likely sell at a deep discount that you would probably regret.
As with real estate, financial assets and most financial instruments are discounted for uncertainty with markets dysfunctional at the current time. Success should be measured by the cash flow that you will receive and the eventual value of those assets.

Here Is What We Know

As of March 18th, at least a 2-week partial voluntary quarantine has been enacted to halt the spread of the virus. Cases in the United States are likely near 15,000 known people so far with deaths approaching 200.
As a comparison to the current pandemic, the Swine Flu infected over 60,000,000 Americans with over 12,000 deaths. During that same time period, early 2009- mid 2010, the equity markets rose 38%.
Springtime, based upon the seasonal peak in flu virus that typically results in about 10,000 U.S. deaths per year, is likely to bring rapid containment and recovery to normal levels. Once the parameters for lifting the temporary nationwide near shut down are announced, the markets should start to return to normal.

Clear Advice and Counsel

With interest rates near zero, the future value of assets providing cash flow is likely to be substantially higher. Therefore, for clients, we will automatically reinvest interest and dividends to grow future income and take advantage of panic bargains.
Clients should make sure you have enough cash in the bank for the next 90 days. Call us if we need to send extra cash to your bank for a cushion. We will selectively add to reliable interest and dividends as the crisis unfolds.
April and May are likely to demonstrate that the Real Estate and the Financial Markets are resuming normal functioning.

COVID-19 – MGAM Operational Information

We understand the concern and uncertainty you may be experiencing surrounding the coronavirus (COVID-19) and we are committed to being responsive to those concerns.
We want to assure you that we have procedures in place that will allow us to continue to service your accounts with limited interruptions. The McGowanGroup has already implemented a secure cloud-based infrastructure and every McGowanGroup team member has the ability to access all of our crucial applications remotely and securely, allowing us to meet our client’s needs.
We will continue to monitor the COVID- 19 situation and will adapt our internal plans as needed to carry on our operations as usual. We appreciate the opportunity to service you and your family.
Stay safe and rational. We are devoted to your success.
Dow Jones Industrial Average  (Year to Date)

– Courtesy of Bloomberg LP

Dow Jones Industrial Average During Swine Flu  (04/12/2009 – 04/09/2010)

 – Courtesy of Bloomberg LP

Coronavirus Globally Confirmed Cases (03/20/2020)

– Courtesy of Bloomberg LP

Coronavirus U.S. Confirmed Cases (03/20/2020)

– Courtesy of Bloomberg LP

BlackRock Corporate High Yield Fund Total Return Analysis (12/31/2007 – 12/31/2012) 

– Courtesy of Bloomberg LP

 West Texas Intermediate Crude Spot Price (03/20/1995 – 03/20/2020) 

– Courtesy of Bloomberg LP

Headline Round Up!

*National Emergency Updates!
*Global Financial Correction Updates!
*Central Bank Infusions!
*90 Day T-Bill Drops Near ZERO!
*Massive Toilet Paper Shortages!
*Scott Minerd Says Yields Going Negative? He looks right again?

Texas Energy Gold Rush

*Institutional Predictions of $60 Oil By Year End.
*Oil Trades to Near $20 Bounces to Near $25

 

Profit Report!

*All Research Focused on Coronavirus?
*Duration Risk Updates!
*North Texas Superstars and Implosions!
*What Do Year to Date Numbers Tell Us About Money Flows?
What is the Cash Flow Revolution? How did it help recover to record profits after 2002 and 2008?

 

Research Round Up!

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