Titles (included on video):
Managing Director – Investment Officer
Vice President – Investment Officer
MATT: Hi everyone, and thank you for joining us today. We hope you are all well and safe during this tough time, and please know that you and your families have our best. We’re coming to you today from our individual “quarantines” but wanted to share an update on where things are with the economy and the markets. We’re also posting timely updates on LinkedIn and our team’s Facebook Page so be sure to follow us there as well.
TOM: Times like this require perspective and a process to navigate through the turmoil. Panic has never been a sound investment strategy and that remains true today. These shocks can be unexpected but a true long term financial strategy should be designed to withstand these shocks, adjust and move forward. In March, we saw extreme swings in the markets, mostly in stocks but also some dislocations in the bond and interest rate markets. In fact the Dow Jones Industrial Average had 10 of it’s largest one-day moves since 1985 in March 2020 alone. Including five of its 20 best and five of its 20 worst one-day returns! This is a major shock to the economy, markets and our way of life. We are however confident that things should rebound, but will take time.
MATT: Comments have surfaced about a possible “depression” arriving from this. The Great Depression in the ‘30s lasted 12 years and arose from major dislocations in the markets, the economy and financial conditions. We believe that those conditions are not present today. Historically up to this point, every market correction and bear market has been followed by a recovery and we believe this one will be no different.
It’s also why, as part of our process, we incorporate buffers like fixed income, cash and Alternative investments into portfolios. The markets appear to be functioning well and the buffers have been holding up. And we expect certain companies and sectors to rebound quicker and higher than others. It’s part of our process to prepare, identify and navigate these types of markets because they are inevitable. We are however saying that we believe things should rebound and we’re taking advantage of very attractive, high quality assets for clients. And remember: the markets are a forward-looking mechanism. They don’t necessarily need the all-clear signal to start recuperating.
TOM: On a more general note: our interconnectivity is much stronger today as are our capabilities economically, financially and technologically. It’s been a tough adjustment for sure, having to self-isolate away from family and friends. But we’re all in this together for the betterment of our communities and the world at large. But can’t wait to get back our regular routines!
We are here to help you navigate this, and available to answer any questions that you have. Thank you again for joining us today. Stay safe, stay tuned and stay connected!
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