Are We in the Eye of the Storm?

It is hard to believe that we are only halfway through this whirlwind of a year called 2020. Unfortunately, we have more volatility to come. The presidential election campaigns are just about to start ramping up. Covid-19 cases continue to rise. Unemployment is above 10%. What could possibly be next?

The stock market and the economy are not in sync. While the stock market has come back from the lows of March, the economy continues to stutter as it tries to re-open from the Covid-19 shutdowns. It is the stock market’s job to predict the economy’s health 6-9 months from now. It is painting a rosy picture. Stock valuations haven’t been this high since the Dot Com Technology Bubble. It is hard to know what is really going on. The Federal Reserve has flooded the market with money. Companies have suspended their forward-looking guidance. Bond interest rates are at/near record lows.

Our number one goal to you, our clients, is asset preservation. Our second goal is to earn a fair rate of return. The markets are very frothy right now. Visibility is limited. We are taking action where we see opportunity, but we are being conservative. As your fiduciary, we are keeping you safe while working to earn a fair rate of return.

Do you have any questions? Do you just want to talk? We are here for you. The easiest way to get in touch with us is a phone call. Do not hesitate to reach out to us. For more in-depth discussion/screen sharing, we have a Google Meet subscription (it is like a Zoom meeting, but more secure). If you would like to get together in person, let us know. We are practicing social distancing, but as long as the weather cooperates, outdoor meetings pose a limited risk.

Yours truly,

Michael Cantlon
Thomas Guyett
Robert Gephart