It’s Always Darkest Before the Dawn

Dear Investor,

The stock markets are down close to 20% in a breath-taking few weeks from recent highs. Interest rates are at record lows

We have weathered market dislocations of this magnitude before. In each instance, the stock market has recovered and gone on to new highs. And every time we have taken you through them intact.

We have tripled our cash reserves in anticipation of the current fears gripping the world. Though many of our holdings are currently suffering, our covered calls have helped cushion the panic selling. We eliminated our exposure to cruise lines, airlines, and restaurants. Our long-held positions in precious metals have been a bulwark to your portfolios.

We are now anticipating a recession in 2020, which is much overdue. You should understand that markets are forward-looking and have probably discounted much of this already. We invest in great companies that have enduring, long term earnings. Many will come out stronger than before as they take market share from weaker competitors.

Staying healthy is the most important concern. Allow us to deal with the financial situation. That’s what you are paying us for.

We are looking for a capitulation selling climax as the equity markets inevitably reach their bottom.

As always, thank you for your business and trust in us. Please contact us with your questions & concerns.

We are in this together.

-Mike, Tom & Rob