Coronavirus

Hi Clients:

I thought I would send along another update.

Wow, what a wild ride.  Virus news, a surprise Fed rate cut backfires, Biden’s wins calm the markets.

I hope it doesn’t sound too cavalier to say that it all feels vaguely familiar and somehow beside the point.

I have experienced an increasing number of adverse market reactions in my career: Black Monday, the internet bubble’s slow-motion deflation with 9/11 in the middle, the Financial Crisis, the Flash Crash, the Taper Tantrum, Brexit, Trump’s surprise upset and now the coronavirus infodemic.

It is always nerve-wracking because of the uncertainty.

But in talking with a handful of you and thinking about all of your particular goals, I have no doubt that our investment allocation and investment discipline will get you all to your goals.  Whether the health and economic effects of COVID-19 end up being severe or mild, our portfolios will surpass their previous highs sooner than we can imagine. 

Counterintuitively, investing during these declines gets us to our goals even faster, and we have invested cash in many accounts.

So please know that while we worry about the virus and how disruptive and severe it could be to our lives in the near future, we have no concerns about getting you to your long-term goals.

Please do not hesitate to contact me if the news gets to you and you want hear how we protect your money and why our methodology works.

Sincerely,

John