June Newsletter

Old Dominion Capital Management |
ODCM Team Video Conference Call

Here we are, social distancing-a term unheard of a few months ago. Let us know if you would like to join in!
We are more than happy to host your next review via a ZOOM meeting.  You will receive clear instructions on how to join the meeting via your laptop, tablet, or smart phone.  The planners can share their screens or their video streams, and you can share your screen as needed throughout the meeting.  Stay safe and save a trip to the office while still receiving regular financial planning checkups.

 

Ocean Wave

Another Wave of Volatility

  • The corona virus outbreak is causing tremendous human and economic hardship across the United States and around the world. 
  • The virus and the measures taken to protect public health have produced sharp declines in economic activity and a surge in job losses. 
  • Weaker demand and significantly lower oil prices are holding down consumer price inflation. 
  • Financial conditions have improved, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
  • It is likely that the ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and could pose risks to the economic outlook over the medium term.  
  • In light of these developments, the Federal Reserve announced Tuesday, June 10 that it has decided to maintain the target range for the federal funds rate at a very low 0% to 0.25% percent. They expect to maintain this target range until they are confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals, possibly until 2022.

 
As you many have noticed, the stock market did not like this news.
 
As states begin loosening COVID-related precautions, the number of cases in some states is on the rise, and the stock market does not like that either.
 
Is it time to panic?  No.  As usual, we urge you to remain calm.  No one knows what's going to happen in the markets from day-to-day, but over the long run, diversification and systematic rebalancing in accordance with a sound investment policy has worked for us and for our clients.  We continue to watch the markets closely and meet daily to review portfolios and make changes when warranted.
 
We encourage you to remain focused on the big picture - where you are relative to your goals - and try not to worry about what's going on in the stock market on any given day.  Your financial plan takes market swings like this into account when calculating your "Probability of Success" and your ability to achieve your goals is what's really important at the end of the day.
 
If you have not met with your Advisor in the past few months, now is a good time to do so.  If you are new to ODCM, we are happy to talk with you to see if  we can help get you on track to meet your goals.
 
Stay safe and healthy, and try to enjoy the little things!