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2020.04.05 Penn Wealth Report Vol 8 Issue 02

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Penn Wealth Publishing Subscription Information https://www.pennwealthreport.com Penn Wealth Publishing 9393 West 110th Street 51 Corporate Woods Suite 500 Overland Park, KS 66210 4 penn wealth Report volume 8 issue 02 05 apr 2020 Penn Wealth Report Copyright 2020. All Rights Reserved. 1943 rationing ad; fair use; UNT Digital Library From the Editor/ I guess we should take some comfort from the accompany- ing World War II-era ad on rationing: society has always had its fair share of jerks. Nonetheless, the complete lack of toilet paper in US supermarkets for most of the month of March doesn't exactly highlight America at its best. e madness of crowds. Unfortunately, the Great Toilet Paper Run of 2020 quickly seeped into other consumer goods, like meat, eggs, pasta, hand sanitizer, and Twinkies. One has to wonder what the mob would look like if the culprit were something worse than a virus emanating from a disgusting market in Wuhan, Hunan Province, China. e stock market debacle may be another topic, but the same forces were at work. Will there be economic pain from an entire nation—the entire world—cutting productivity in half? Absolutely. And the numbers will look horrendous when they start rolling in. Does that mean that when this ends, and it will end, companies like Microsoft, Coca-Cola, Apple, and Dollar General will be a shell of their former selves? Absolutely not. Based on investors' indiscriminate selling, that must be what some people think. e madness of crowds. We will look back on March of 2020 as the best opportu- nity to buy stocks over at least the next five year period. But that doesn't make the pain of watching portfolio values drop, or of watching the Dow drop 1,000+ points in a day, go down any easier. As quickly as this crisis arose, it will subside. By summer we will be wondering why everyone got so worked up about it. One major Wall Street firm sees the Dow going 50% higher between now and the end of the year. Amazingly, that stunning achievement would just bring that index back from its current level around 20,000 to where it was a few months ago—just below 30,000. We are rooting for them to be right. Could we hurry up, though, and bring some sanity back to the markets, and some toilet paper to the stores? —MSH Michael S. Hazell editor-in-chief The Toilet Paper Stock Market While consumers were indiscriminately buying up the nationwide supply of toilet paper to no end, investors were busy selling off the best US companies to no good end; has the world gone utterly mad?

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