David Rea, president of No. 1-rated financial advisor firm Salem Investment Counselors, said that, despite the pandemic, the firm’s “ability to manage stocks and bonds and to communicate with our clients is unchanged.”
Salem Investment Counselors
Stock prices are “OK” — neither cheap nor pricy — given prevailing interest rates and other factors like federal stimulus money that’s been pumped into the U.S. economy since the spring, according to David Rea, the president of Salem Investment Counselors.
The Winston-Salem, North Carolina-based financial-advice firm ranked No. 1 on CNBC’s second annual Financial Advisor 100 list. The firm, which manages $1.75 billion in client assets, also placed first in 2019, when CNBC debuted its list of top advisors.
“We think probably, like last year, the market’s OK,” Rea said Tuesday on CNBC’s Power Lunch program.
“When adjusted for interest rates where they are, it seems fine,” Rea said. “We’re looking at an economic reopening, I think. We’re looking at some good science on the horizon [via] probable vaccines, probably treatments [for Covid-19].”
Federal lawmakers have also injected a large amount of financial relief into the economy, Rea said.
That funding came though four bills passed in the early days of the coronavirus pandemic, the largest of which, the CARES Act, offered $2.2 trillion to businesses via tax breaks and small-business loans and to individuals through stimulus checks and enhanced unemployment benefits, for example.
The Federal Reserve slashed interest rates to rock-bottom levels in March to help combat the coronavirus-induced economic crisis.
While state officials across the country closed large swaths of the economy in March to contain spread of Covid-19, many have allowed nonessential businesses to reopen.
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