Market Commentary

“The stock market is like being in a toxic relationship.” – Mary McWha | Office Manager at Sphere.

In our last commentary we mentioned the volatility we’re seeing now is common in a market sell-off. Just because the market is up a little today, doesn’t mean we’ve seen a bottom, it just means we’ve reached a place where investors are willing to put some money back into the market. Just as we took advantage of the big sell-off yesterday and put a little bit of our client cash back into the market.

We’re always watching economic indicators, but as coronavirus quarantines slow our economy down, we’re working to estimate the impact of this on forward earnings projections. We were in a market that was already overvalued relative to historical markets. In a healthy economic environment, without a global pandemic to create fear, there was a high probability for a short-term decline anyway. Couple that with a global pandemic and an economy that has been running cold for a few quarters now and we could see an actual impact to corporate earnings.

The other component that could negatively impact the economy is the tremendous debt small companies have racked up over the last three years. A lot of that debt is highly levered to EBITDA already and if that causes a wave of small employers to lay people off or if they’re acquired and the acquirer lays people off, we could see a sharp rise in unemployment.

All of this is inconsequential compared to the health risks we’re having to deal with right now. In order to respond to this pandemic with an abundance of caution, Sphere is kindly asking our friends, family and clients to not enter the office unless scheduled for an appointment.

If you’re scheduled to come in before March 31, and would like to reschedule or would like to schedule an appointment, please contact Mary ( | 479-435-6625).

Sphere will continue to operate without interruption, even if any of us are forced to self-quarantine as we have taken the necessary steps to make sure there’s no impact on access and production.

We will continue watching this market closely and working diligently to execute our disciplines.

We appreciate the opportunity to serve you,

The Sphere Wealth Management Team

Sphere, LLC is a Registered Investment Adviser. Advisory Services are only offered to clients or prospective clients where Sphere, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by Sphere, LLC unless a client service agreement is in place. Additional information about Sphere, LLC also is available on the SEC's website

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