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“This is just simply unprecedented.”
In nearly every fashion of life, the words above of Drake & Associates Founder and CEO Tony Drake ring incredibly true. They absolutely do in his world of finance and investments.
“We have essentially hit the pause button on the economy, a manufactured recession,” he told WTMJ’s John Mercure during the WTMJ Cares Town Hall Tuesday.
“The unemployment numbers are really scary.”
He explained that the previous highest total of unemployment applications in one week was 700,000, in October of 1982.
“The first week of coronavirus, we had 3.3 million new applications. The next two weeks, we had another six million per week,” said Drake.
“When people aren’t working, they’re afraid they may lose their jobs, there’s no spending going on. Consumer confidence can make a bad economy and can break a good economy. We’ve got to get consumers back to work and feeling good. That’s going to drive this recovery.”
This unprecedented time certainly can bring a lack of confidence in investors as well. Particularly for people nearing retirement, he says people need to get their portfolio tested and “come up with a plan.”
“Risk is all about time horizon. If you’re newly retired or rapidly approaching retirement, losses early in retirement are much more impactful than late in retirement,” he said.
“Patient people with a plan will inherit a lot of wealth.”
He especially pushed for people not to panic.
“For the most part, people will get through this. I believe in our country. We will recover from this.”