Pub. 2 2020 Issue 2

M A R C H / A P R I L 2 0 2 0 14 nebraska cpas Coronavirus is both a public health crisis and an economic crisis. Unfortunately, the two work almost directly against each other. The biological cure of social distancing and containment becomes the economic disease as vast amounts of our consumer-driven economy shut down in an effort to best combat the virus. However, America has always found itself faced with great challenges. And yet, this country has proven many times to be a beacon of courage and resolve to effectively meet those tests head-on. Now the beacon is lit once again, and we must respond. While the challenge is great, I would highlight four reasons for optimism—four twinkles of light inspiring my belief that in the end, we will prevail. 1. We adapt. As a country, we have shown our resilience many times in the face of past crises. During the darkest hours of the Great Financial Crisis of 2008-2009, the events following Sept. 11, 2001, and even twoWorldWars, many Americans could never imagine things being the same again. But we adapted to our new reality and have a long and successful history of innovating our way out of crises. Today, schools and businesses are finding ways to keep learning and commerce moving forward from their homes. Automakers are retooling factories to help meet a drastic shortage of ventilators. Pharmaceutical companies are working at blinding speed on therapeutic solutions and new vaccines. The fashion district in New York City is converting garment production to assist with the shortage of hospital gowns and masks, and the arts and fitness communities have switched to online concerts and virtual work out rooms. All across America, the private system is adapting and mobilizing to help the public sector battle this terrible virus. Great crises often begin with fear, and out of that fear can come a unity that bonds us together even stronger. 2. Markets have worked. While the market reaction has been swift and harsh over the past several weeks, market mechanics continue to function. Markets are repricing for this new and unexpected norm, and while painful, that’s what markets do. Circuit breakers have triggered numerous times to create a pause in trading in an effort to cushion large market movements. Liquidity has been challenged, and the Federal Reserve (Fed) has I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crisis. —Abraham Lincoln 4 REASONS FOR OPTIMISM STATE OF THE MARKETS BY DARRELL L. CRONK, PRESIDENT, WELLS FARGO INVESTMENT INSTITUTE