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Covid-19

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Dear friends,

As the COVID-19 situation continues to evolve, your long-term investment success continues to be our main priority. While the current situation has created fear and uncertainty, our hope is to be the beacon of reason which will ultimately lead you to success through this difficult period.

For brevity purposes I am bulleting out a few points I think are important.

1.       Our investment plan is built with these types of apocalyptic episodes in mind. In short, we plan for this and we expect them to happen from time-to-time. Market corrections always disguise themselves as different and unique, however the finer characteristics of temporary declines remain the same, i.e. this is nothing new. This virus may be new to the world, but market volatility is not. Throughout history we have endured countless corrections and have ultimately prospered. The short-term discomfort is always worth sitting through for the rewards of long-term growth.

2.       Bear markets actually reduce risk, not increase it. While it may seem counterintuitive, the market becomes much easier to invest in when it falls. It is when markets are at highs that there is a higher risk to investing money. In short, this takes the pressure off. During the last several weeks I have been extremely busy helping people who see the opportunity in this correction, and we have been rapidly putting cash to work at great values.

3.       Major market corrections are the beginning of the next bull market. We were in the midst of a 9-year bull market and this consolidation will prepare us for the next upward advance. Like highly trained athletes who give themselves recovery breaks throughout the season, the market also takes these breaks. This break allows for recovery to become stronger while preparing for the next push. This is exactly what happens to the financial markets during a correction. While uncomfortable now, we are setting the stage for opportunities ahead.

4.       I want you to sit tight and have confidence. We will get through this just as we have with all corrections in the past. Long-term up moves in the market far outweigh any temporary declines. This is a very stressful time as are all market corrections, but please let me bear the stress for you. I want you to put the burden of the market on me and I want you to enjoy the opportunity of spending quality time with your family instead.

From an operational standpoint, I want to ensure you that we are working at full capacity and will continue to do so. Our long-standing practice of utilizing technology coupled with a proven business continuity plan allows us to maintain full functionality without disruption to our processes.

In closing, keep in mind that fear and uncertainty are the enemy of successful investing, while faith, patience and discipline are what will ultimately lead us to success. If you feel uneasy and would like to discuss the current situation, I want to talk to you. That is what I am here for, so please call or email me as often as you need.

With warmth and gratitude,

 

Mark Simmons
President

 

 

 

 

 

 

 

 



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