• Kavya Ravikanti

COVID-19 x Team YNB


Photo by Markus Spiske on Unsplash

Market Updates & TLDR;

March was the worst month for stocks since 2008, with the S&P 500 falling more than 12%. This morning, the S&P 500 fell another 3% and Dow Jones fell 500 points this morning, putting April off to not a very good start. Markets have calmed down from some of the more volatile weeks in March, however, President Trump warned on Tuesday of "very, very painful two weeks ahead" and the UN warned of more instability ahead. If you read some of the above and thought, "What the heck are they talking about?!", don't worry because next week we are launching a Back to the Basics series on Investing. We'll break down everything from dividends to the S&P 500.


What to Read

Here are some of our favorite reads this week to get you up to speed. On Economic Recovery from COVID-19 On Stock Market Performance On Recession and Interest Rates On Financial Relief and Resources Available


Meet Team YNB

With social distancing and quarantining, we are all trying to figure out a way to handle this situation the best way we can. Here are Team YNB's thoughts and how we are all coping!

How are you doing and how have you adjusted to the changes? Kavya: It's week 3 of the quarantine and although it took a little bit to adjust to this new normal, I think I've finally found a routine that makes sense for me. I try to limit the amount of news I watch to keep my sanity and with online classes and working on YNB, I have a few things to keep me busy. This time has allowed me to go back to old hobbies such as watercoloring and try out new things like my hand at lettering (it's harder than it looks). Overall, I am grateful that my family and I are safe and we are able to handle this challenge. Christina: I'm doing well, but initially everything felt surreal. From taking precaution by cancelling my spring break trip to the transition of online classes to losing the ability to experience my final semester of college in person, it was nothing I could've ever expected. Now that school's started back up, everything has become more of a routine with classes, projects, and family. I have watched a lot of TV (currently watching Tiger King), done many online puzzles, and spent countless hours hanging with family. All in all, I am thankful that my family and I are well and safe! Daniel: I'm doing well, all things considered: in retrospect, it's surprising how late campus shut-down (within a few days, someone was already confirmed positive). The hardest times were between shut-down and getting home: will anything happen when I come home to my parent's house of >50 year olds? Several weeks later, I'm glad to be home and grateful we're safe. In the mean-time, I've made my bedroom a make-shift Zoom-studio, embraced Slack + Messenger emoji's, and only read the news when I get up in the morning. Podcasts and meditation have helped me maintain my sanity for sure. What's your take on COVID-19's impact on the markets and the economy? Kavya: I think it's important not to sugarcoat the impact on the economy and the markets so far. This crisis is definitely ripping through businesses of all sizes, with everything from local businesses to large giants taking huge hits. Internships are being canceled and job offers rescinded for people our age. It's definitely a hard time to feel optimistic about the future economy with reports saying we are hitting 2008 lows, but history shows us that we have consistently been able to recover and bounce back and I am hopeful! Daniel: I think all industries will be hit by the shift in consumer behavior, both those who can't go remote (e.g. restaurants closing doors) and those who can (e.g. tele-conferencing services having growing pains). The unemployment worries are real, especially with recent hiring freezes, lay-offs, and a decrease in startup investment. However, I am optimistic. With the focus on remote-work, I think more and more people will be able to find jobs without being geographically limited, especially in the long-run. I've also seen how incredibly generous and innovative people can be during all of this. I also take solace in the fact that the average recession lasts for about 1.5 years, many of those caused by similarly catastrophic events (wars, natural disasters, etc.) What's one thing you are doing differently when it comes to your finances? Kavya: Personally, I have not adjusted my investing strategy when it comes to saving in my Roth IRA. Fortunately, I don't have any debt currently and since I'm living at home, I am saving a lot when it comes to my day to day expenses. I just received my tax refund for 2019, so I am investing a large part of that in my Roth IRA. I also decided to take a little bit of the money I have saved and donate it to COVID-19 relief causes. Christina: I haven't really changed too much when it comes to my overall finances. I'm continuing to pay off my credit card statements along with adding to my savings. However, I've been paying more attention to the stock markets and being aware of how everything is doing. Although it has been disappointing to see the money in my Roth IRA go down, it has been an opportunity for me to continue to invest and perhaps get a "good deal" for the long run. Daniel: Being at home has really cut-down my expenses, so I've been increasing the amount I'm saving in my emergency fund. Most of what I invest is still in my Roth and taxable investment accounts, increasing those ever so slightly because even I can't resist trying to time the market and hopefully get discounted stocks 🤷🏻‍♂️ Favorite quarantine activity? Kavya: Rewatching the Marvel movies in order and watercoloring :) Christina: Spending time with family! This is the first time in forever that my whole family has been able to spend extended periods of time together. My sister was either living abroad or in a different state, and vacations followed my school break schedule. Its been great to just all lounge around and watching TV or eat a family meal together. Daniel: Listening to the "Heavyweight" podcast and exploring new music genres @ everynoise.com.


Disclaimer: The content on Young, Not Broke is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor.

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