BUSINESS
INVESTING DURING
COVID-19
an eye toward the long term and remind
ourselves that we will get through these
uncertainties. Economies and corporations
will once again flourish. Moreover, during
any period of time, whether we are in the
midst of a pandemic, or enjoying economic
prosperity, quality long-term investments
can be found.
From a stock market perspective, we
continue to see good value among many
dividend-paying companies in particular.
64 TAMPA BAY MAGAZINE | SEPTEMBER/OCTOBER 2020
Income-producing stocks have largely
been ignored by market participants
over the past few years in favor of growth
stocks – primarily in the technology
industry. Therefore, long-term investment
decisions should be based on company
fundamentals, focusing on revenue and
earnings growth, balance sheet strength
and ultimately valuation.
Considering the risks that are highlighted
above as well as the improving economic
landscape, and thanks in large part to the
coordinated action of governments and
central banks, you can remain cautiously
optimistic as we head toward the latter
half of 2020. 9
EDITOR’S NOTE: Ian N. Breusch is chief
investment officer of the Tampa Bay Trust
Company, a division of The Sanibel Captiva
Trust Company of Sanibel, Florida, an
independent firm with $2.5 billion in assets
under management that provides family office
and wealth management services, including
investment management, trust administration
and financial counsel to high net worth
individuals, families, businesses, foundations
and endowments. Tampa Bay area offices are
in Belleair-Clearwater and Tarpon Springs.
Much has transpired across
global capital markets
over the last few months.
Just after the World
Health Organization officially declared
coronavirus (COVID-19) a pandemic,
stock markets were aggressively selling off
on a daily basis, oil prices were collapsing,
and economic activity was grinding to
a halt. The unknowns surrounding the
virus and the global economy seemed
innumerable at the time.
While substantial risks remain, both
from a public health and economic
standpoint, stock markets have rebounded
significantly higher since the low point in
March. Social distancing, masks and other
protective measures have helped flatten
infection curves, allowing investors to
begin focusing on the future amid the
backdrop of unprecedented fiscal and
monetary support by central banks and
governments across the world.
Never before have we experienced such a
massive coordinated effort by major central
banks to lower interest rates and provide
nearly limitless liquidity to keep markets
functioning. At the same time, governments
across the globe were providing massive
amounts of stimulus money to their citizens.
While efforts have been taken to deal with
a global pandemic that took everyone by
surprise, considerable risks remain. The
following questions remain as we work
our way through this unprecedented
period: Will a vaccine be developed and
when? How long will it take for economic
activity and employment to fully recover?
What are the long-term implications of
increased government borrowing on global
economies?
Investment practitioners are quite
accustomed to investing in a world with
considerable unknowns. Therefore, to some
extent this period of time is no different
than any other – there are simply new
and unique things to be concerned about.
Instead of focusing entirely on the risks
and allowing fear of the unknown to drive
decision making, it’s important to keep
By Ian N. Breusch
Ian N. Breusch is chief investment officer
of the Tampa Bay Trust Company.