The novel Corona virus outbreak has obviously impacted economies, markets, and businesses. The outbreak’s duration and severity remain uncertain, causing volatile behavior throughout global markets.
We’ve experienced many unsettled and unpredictable periods during the 30-plus years that we’ve advised investors. We’ve learned that fear and panic – rather than underlying market fundamentals – drive markets during periods of crisis.
At this time, as in past crisis, we advocate the basic rules of investment:
- Manage cash: Maintain adequate cash reserves to meet your unfunded financial needs.
- Stay Invested: Invest the balance of your funds consistent with your intermediate and long-term financial goals and risk tolerance.
- Diversify: Diversify your investment holdings across investment type, sector, style and region.
We ask for your patience while we manage your portfolio in line with these time-tested rules. We strongly discourage market timing tactics. Guessing whether it’s a “good time to buy” or a “good time to sell” is equivalent to gambling on a moment of time.
Governments, private industries, non-profits, and academia are aggressively addressing the COVID-19 virus. Treatment or a vaccine will eventually be found. In the meantime, broad mitigation measures are being taken. As with past viral epidemic/pandemics, this will eventually pass and markets will stabilize and recover. Until then, markets will display heightened volatility and there will be near-term economic consequences. However, it is important to remain prudent and disciplined managing your investment portfolios.