Over the past week, we have witnessed tremendous worldwide publicity around economic events that have enhanced feelings of uncertainty. In times like these, we frequently hear that it is difficult to stay committed to an investment program. We understand that fear and emotionally driven actions around investment strategies have gripped the financial markets. The coronavirus, also known as COVID-19, has plagued every media outlet and filled your inbox full of emails.
With this in mind, we have been in close communication with our portfolio managers and we want to share with you what this means for you and your investments:
- First and foremost, we do not expect the coronavirus outbreak to lead to any long-term structural or permanent changes in supply and demand.
- We expect economic activity to remain subdued throughout the second quarter of the year, however, we should see a swift recovery in the later half of the year.
- Our portfolio managers believe that this will only be a temporary setback to global economic growth, and most of our current positioning remains unchanged.
Our investment committee adheres to a disciplined investment strategy that is based on facts, research, trends, and the irrefutable laws of supply and demand.
Throughout history, we have found that markets will neutralize and cycle expansions and contractions. However, emotionally-driven decisions that are made throughout those natural cycles can become the permanent reason behind why it is difficult to recover from selling when the market is low, or buying when the market is up.
Our team is always here to help you and your family answer any questions that may come up, and no matter what decisions you are considering, we are here to support you through them.