By ROBIN POWELL
“The biggest global event since World War II” was how one of my fellow financial bloggers described the coronavirus crisis the other day. And you have to say he’s probably right.
It’s an emergency that’s affecting the whole planet and, in some way or other, disrupting the lives of most of its 7.8 billion inhabitants.
Has to be the biggest global event since WW2, right?
Is that an exaggeration?
I don’t think it is.
— Morgan Housel (@morganhousel) March 17, 2020
Let’s not overdo it. This is not a catastrophe. As a threat to humankind it’s far smaller than climate change. The hardships most of us are experiencing are trivial compared to those endured time and again through history by our ancestors.
I have no more clue than anyone as to where the economy or the financial markets are heading. But the fact that people are now predicting some sort of zombie apocalypse suggests that we may be reaching the point of peak pessimism about the impact of COVID-19.
People are hurting
That said, people are very worried about their personal finances. Employees fear for their jobs. Freelance workers face losing their income and tenants their homes.
Nor is it just the less well-off who are struggling to sleep at night. People who were hoping to stop work in the next few years may have to put their plans on hold. Retirees may need to adjust to a different standard of living to ensure they don’t run out of money.
People, in short, are hurting — and they’re looking for help and guidance. The FT reports today how wealth managers on both sides of the Atlantic are being inundated with calls from anxious clients. Financial advisers in Britain say call volumes are more than 30% higher than they would expect at this time of year.
Most people want to have have their minds put at rest. They want to know that they’re doing the right thing, and that those they entrust with their money have their best interests at heart.
Courage and hope
As the former Mayor of New York Rudolph Giuliani once said, “it is in times of crisis that good leaders emerge.” He was himself a flawed man who came to be widely admired as the embodiment of an indomitable spirit in the wake of 9-11. Winston Churchill did much the same in Britain’s darkest hour in 1940. Both were skilled communicators who gave people the courage and hope they needed when all seemed lost.
So where are the leaders now? Who’s inspiring courage and hope today? Who are the firms communicating with people in their time of need?
There are a few. For me, New York City-based Ritholtz Wealth Management sets the standard; its blogging team has been a voice of calm and common sense since this crisis began. But we need more firms like Ritholtz.
The Evidence-Based Investor wants to play its part as well. This isn’t the time to be talking about specific products or arguing the case for active or passive investing. What we do want to do in the weeks and months ahead is to address the concerns and questions that people have.
How long will this crisis continue?
What impact will it have on my finances?
What, if anything, do I need to do with my investment portfolio?
How can I handle the financial hardship I may be facing? and
What steps can I be taking to ensure that, when another crisis strikes, I’ll be better prepared than I was this time?
Can you help?
But we need help. I’m a volunteer — I don’t get paid for this — and any additional content over and above our regular articles needs to be funded through sponsorship or donations.
We would like to hear from any business, whether it’s a financial advice firm, investment consultancy, asset manager or indeed any other financial services business, who would like to collaborate with us.
In particular, we’d like to hear from firms that are willing to sponsor videos, podcasts, infographics or eGuides.
Are you up for it?
Are you one of the leaders the financial world is looking for?
Please get in touch.
Picture: Joshua Bedford via Unsplash
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
