We would like to provide you with another update on investment market developments and recent market conditions.
Since our letters to investors dated February 27, 2020 and January 31, 2020, global markets have continued toexperience significant volatility.
Today the markets are reacting to both the worsening situation with regards to COVID-19 contagion (as evidenced in northern Italy) and the effect this will have on economies, as well as the Saudi-led oil price war that was escalated over the weekend.
- We would like to reiterate to our clients that we have been positioning accounts ahead of this and:
- Have raised and continue to hold cash
- Have very little to no energy stocks
- Have lowered equity exposure
Maintained alternative assets including real estate that tend to run counter to market declines
Having concerns when volatility affects your portfolio is normal. That is why we emphasize the importance of atailored financial plan; one that accounts for such vagaries of the market while making strides toward your long-term financial goals.
As said in our last newsletter:
We have raised cash and rebalanced portfolios to navigate the volatility and are well positioned in portfolios to be able to (re)purchase some of our favourite companies at a significant discount.
For those who are currently accumulating for retirement and have the ability to add cash they have been saving, should consider doing so as they have a potential once-in-a-decade opportunity to embrace the volatility and add to their portfolio. A deep opportunity to purchase great companies at a significant discount is presenting itself.
We anticipate periods of continued high volatility until COVID-19 is contained and are here to provide you not only with insight, but with advice on how we can help manage the effects and opportunities of the market’s movements.
We welcome you to reach out to us to discuss how this impacts your personal portfolios as we remain just a phone call away.
As always, we thank you for the trust you place in us.