Predictably Irrational


“The investor’s chief problem – and even his worst enemy – is likely to be himself.”

– Benjamin Graham

Predictably Irrational

Over several decades of managing investments and enduring all markets, we have made great strides in understanding the thinking, behaviors and common mistakes, of investors. To avoid these past mistakes, it’s important to read rational research and perspective as it relates to events and times like these.

Please read the two attached articles from Brian Wesbury- Chief Economist from First Trust, titled “Will We Have a Coronavirus Recession?” and “Reasons to be Positive About the US Coronavirus Fight.”The “cure” for the COVID-19 global spread recently has been to shut the economy down. Time will tell and COVID-19 will pass.

In response, U.S. households would be expected to begin tightening their belts by cutting down on nonessential purchases. These purchases include eating out, vacations, airline tickets, baseball games and concerts. A drop in consumer spending within an economy that is based on services and non-essential spending has the potential to drag down the entire economy.

In dealing with disruptions we have traveled familiar territory and there are many Policy options for addressing exogenous shocks (Supply Shocks, Demand Shocks, Financial Shocks).

For this to happen, we anticipate that policy makers (as quickly as today and this weekend) will make unprecedented Fiscal and Monetary responses to curtail the economic impact and shocks to our economy. Once this happens, the markets will express relief.

We may see a “V-Shaped” recovery following the shock. At the very least, we expect a recovery that will look close to the “Nike Swoosh!”

We are always here for our clients, and now more than ever!

Robert L. Schein , AIF® 
Managing Director, Partner


Blanke Schein Wealth Management is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.