The Financial Implications of COVID-19

The Financial Implications of COVID-19

Past Crises Offer Hope in Unprecedented Times

With the world gripped by fear as COVID-19 wreaks havoc on our lives and the economy, investors are particularly anxious and wondering what to do. With the added element of concern for the health and safety of ourselves and our loved ones, this emotionally-charged situation makes financial decisions even trickier. In this inspiring episode, Apollo Lupescu, PhD and Vice President at Dimensional Fund Advisors, looks back on previous historic financial crises and how they offer hope as we move through uncharted territory. 

Apollo is a Vice President at Dimensional Fund Advisors, where he started in 2004 after finishing his PhD in economics and finance at the University of California, Santa Barbara. With experience in a variety of practical subjects, he is commonly referred to as Dimensional’s “secretary of explaining stuff” and presents around the world, representing the firm at conferences and events. Before joining Dimensional, he had his own consulting firm, and worked with the US Department of State and the White House on a variety of projects.

“The markets are resilient because companies are resilient…because mankind in general is resilient..and there’s reason to be optimistic.”

What You’ll Learn from This Episode:

  • How this crisis is similar to the one in ’08-’09
  • A look at 1973 when the world stopped operating on a gold standard
  • How the panic of the 1973 oil crisis resulted in significant positive change
  • The shocking activity on the New York stock market during WW2
  • Examples of how some companies are changing what they manufacture in response to the needs arising from COVID-19
  • The importance of reconciling fear of the pandemic with a volatile market as best we can
  • Why it is essential to acknowledge fear and anxiety before making financial decisions
  • The need for seeing a financial advisor as a coach during this crisis and seeking help
  • The two main reasons why the markets appear to be functioning properly
  • Why the market always requires both optimists and pessimists 
  • How less clarity and more uncertainty can lead to a broader range of potential outcomes
  • Why it is essential to maintain portfolio discipline 
  • Examples of stocks and re-balancing, and why re-balancing is helpful
  • Why blanket advice and recommendations for investing are dangerous

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