Senior Director of Investments at The Vanech Group of Oppenheimer & Co. Inc., David Vanech, is no stranger to major changes across socio-political, economic, and global landscapes. Throughout his decades of experience, he has helped companies navigate uncertain waters during difficult and trying times.
If the COVID-19 pandemic has taught people anything, it is that people are resilient and up to the task of tackling any challenge thrown at them. Together, the world will likely come out of this a better version than it went in.
To that point, David Vanech wants to do his part to share key takeaways from industry and opinion leaders who have shed light on this situation and what the future may hold.
Oppenheimer & Co. Inc.
For over 130 years, Oppenheimer & Co. Inc. has provided their clients with unparalleled financial insight and expertise, empowering them to reach their individualized goals. As an innovative and solutions-oriented full-service brokerage and investment bank, the company is in a unique position to provide insight into the Coronavirus situation from a financial and market perspective.
On March 23-24 Oppenheimer & CO. Inc. hosted Dr. Mitchell Weinstein and Dr. Kashif Memon, key opinion leaders, to discuss the evolving pandemic and potential development candidates for treatment protocols. Both doctors expressed their opinion that the first major hurdle to overcome is rapid diagnostics. Once the diagnostic hurdle has been overcome, development and testing of a range of treatment options represents the second major obstacle. Following the development of treatment protocols and options, is the development of a vaccine to prevent future outbreaks.
According to Dr. Memon, “The current strategy focuses on ‘flattening the curve”, although a subsequent second and possible third wave of infections is possible (though likely less pervasive). Adding to this, Dr. Weinstein noted that “Lessening the effect of silent spreaders and providing greater resources and back-up to our stretched healthcare system and workers is also critical.”
Volatility is Natural – long term investments still make sense
According to Oppenheimer & CO. Inc., it is natural for healthy markets to experience sizeable selloffs from time to time. For example, over the last 21 years, all but one year experienced a “pull back” of 7% or higher. Better news yet, is that out of those 20 years where a significant pullback was recorded, only 5 yielded a negative annual price return. When one looks at the numbers, historic performance would indicate that being invested during the worst times in the market is not nearly as bad as it is missing the market’s best days during a rebound. Although this may be difficult for some investors to stomach, working with a qualified financial advisor can aid in dampening the effects of volatility whilst still keeping the client’s long-term goals in mind.
A Look at Historical Epidemics and the Impact on the Market
Investor fear, consumer uncertainty, and the fluid and evolving nature of the COVID-19 pandemic have resulted in significant market fluctuations across the globe. Yet global markets remain resilient, and if past data is any indication, the future still looks bright.
Oppenheimer cites Bloomberg data that tracked market fluctuations during modern pandemics such as SARS, Avian Flu and H1N1. The data revealed that in all but one epidemic, the S&P 500 index was positive across a 6-month period, with an average price return of 8.8%.
In the same vein, data spanning the 12-month period following the emergence of an epidemic showed that in 9 out of 11 pandemics the average price return was a healthy 13.6%.
About David Vanech – Financial Advisor
David Vanech, based out of Providence, Rhode Island, is a financial expert holding a B.A. in American Studies from Wesleyan University, as well as holding several industry certifications. Over his years in the financial industry, Vanech has developed a strong reputation for his forward-thinking strategies and expert wealth management consultation for high net worth individuals. Having initially “learned the ropes” during his job at Morgan Stanley, Vanech has risen within the industry to his current role as Senior Director of Investments for Oppenheimer & Co., in which he has proudly served for ten years.
In his downtime, Vanech contributes heavily in both time and leadership as an active volunteer in a number of local charitable and philanthropic organizations, and is a current board member of both the Partnership for Philanthropic Planning of Rhode Island as well the Providence After School Alliance.
Company Name: David Vanech Financial Advisor
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