An Open Letter To Our Clients
Quick facts - the TLDR version
Continue to stay safe, be healthy, and wash your hands!
A 10-year economic expansion and bull market came to a swift end this February
Stock markets saw a decrease of 30%
Rapid state and federal government intervention in the form of lockdowns, Federal rate cuts, limited social welfare expansion and has dampened the economic severity of the pandemic
It is likely that we are in a recession
Historically, pandemics have always come to an end
Asset allocation remains key to achieving financial goals
We hope this letter finds you healthy and safe. The world changed before our eyes in the first three months of 2020. In January, our major global concerns were the Australian wildfires, the trade war with China, and the Presidential impeachment. Now, the economy and markets are driven by uncertainty surrounding the spread and the economic effects of the novel coronavirus as well as government responses. We have to remind ourselves that our current crisis will recede, although the economic impact may be long-lasting.
The constant barrage of negative news combined with the global quarantine can feel daunting at times. Although there are indeed signs of improvement with the flattening of the curve and increased testing, current conditions remain challenging and may even deteriorate. As investors, we continue to focus on the long-term.
Your portfolio is allocated specifically for you and with your financial goals in mind. Risk tolerance, time-horizon, and current and future cash needs are all taken into account. Maintaining a well-diversified portfolio that matches your goals and time horizon remains the best path forward.
The resiliency of communities and economies are no doubt being tested. The 10-year economic expansion and bull market has come to a swift end. However, pandemics are not a new phenomenon. We will weather this storm globally, nationally, locally, and personally.
In these times we are constantly reminded of our good fortune. Never have we been more grateful for personal health, strong relationships, our communities, and modern era luxuries of connectivity.
Be safe, stay healthy, and if you need anything at all we are here to support you.
Warmly,
Gideon Cohn