Our team has been through a lot of market events in the last 20 years and each time feels like a punch to the face. The Coronavirus and Oil shock have delivered two of these punches in succession. It is very difficult to look past the headlines of the day to see that this too shall pass and that we will, at some point in the future, return to normal. While we believe that growth should rebound after the outbreak abates, we do not know the path we will take to get there.
The reality is that nobody knows if the market will experience a further pullback from here, how sharp it could be or how long it might last. However, we will continue to prudently manage your assets based on facts and not the emotion of the day.
Although counterintuitive, the bonds that we use for safety that have delivered positive returns over the last few weeks, now seem expensive while many stocks are now at very attractive levels. We are continuing to balance safety and future growth potential in an uncertain time.
What helps us sleep at night during these times is our focus on investments that will withstand an economic slump and will continue to grow in the future. We’ll never hit a homerun, but in these times, consistently hitting singles while avoiding being struck out is key. We hope this helps you sleep at night as well.
Please do not hesitate to give us a call with any questions or comments.