The/My New Normal

I hear this phrase – The New Normal – batted about a lot these days.

It has been around for years. In fact, it was even a TV series in 2012.  As a finance nerd, I think it originated when we brought interest rates down to zero during the great recession.  Whatever the origins, it is the term everyone wants to use in reference to what life will be like with and/or without Covid – 19.

My new normal is captured in the picture above – drinking my way through my wine cave way too fast!!   Those bottles names are Friday, Saturday and Sunday night!  To be honest, it is one of my silver linings these days – better quality wine intake.   They were all great.

In the finance world, I would dare to say not much has changed.  Good discipline, a well-diversified portfolio and flexibility in one’s finances go a long way.  That will probably not change for many decades to come.

The fact the stock market is behaving in unpredictable ways is in itself predictable.  No New Normal here.

What has changed is our comfort with technology.  Social distancing has brought about a surge in technological acceptance.  Many technologically challenged friends and relatives are now becoming converts to the value of seeing a friendly face and hearing a friendly voice.  I suspect this dynamic is here to stay.

Working remotely has also been forced upon us, and it is not as bad as we imagined.  Yes, the kids are a pain to entertain, but behind that dynamic lies less time spent on commutes and surprising productivity gains.   I think this new way of working is also here to stay.

Do not get me wrong, I long for being able to get close to friends - and even strangers - again.   We have millions of years of biology buried deep within us that needs close interaction.  I do think we will return to something that very closely resembles the pre-Covid days.  We did it after the pandemic in 1918, and we’ll do it again, but for a few technologically induced wrinkles.

In the meantime, it’s time to shore up the wine supplies and get a haircut.

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This is being provided for informational purposes only, and should not be construed as a recommendation to buy or sell any specific securities. The views expressed are those of Southern Investment Management Collective (SIMC) and do not necessarily reflect the views of Mutual Advisors, LLC or any of its affiliates. SIMC, nor any of its members, are tax accountants or legal attorneys, and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional. Investment advisory services offered through Mutual Advisors, LLC DBA Southern Investment Management Collective, a SEC registered investment adviser.

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About the Author: Kent Fisher, CFA, CFP^®

Kent Fisher is a Chapel Hill, NC Fee-Only Comprehensive Wealth Manager at the Southern Investment Management Collective (SIMC).  SIMC provides comprehensive financial planning, retirement planning and investment management services to help clients organize, grow and protect their assets.  SIMC serves clients as a fiduciary, and tailors all solutions to each client's unique situation