The Informed Investor

Without exception, today everyone’s attention across the globe is focused on the movement of the coronavirus. One key difference between this crisis and the last is that although investors are deeply concerned, they better comprehend the economic and financial implications more clearly than the Great Financial Crisis. Regardless of the catalyst responsible for a crisis, reactions to financial markets seldom change throughout history.

Given such higher uncertainty now, following are the steps our staff have taken on your behalf:

• Your liquidity needs are our first priority. With this objective in mind, our Firm has transitioned all discretionary accounts from reinvesting stock dividends and bond interest to pay in cash.
• We are carefully monitoring financial markets to determine the appropriate time to rebalance accounts in order to take advantage of the opportunities that have been created by the stock market decline.
• In the meantime, your portfolio has been proactively diversified across multiple asset classes with different risk-reward characteristics, including high-quality bonds which have continued to increase in value during recent weeks.

We always appreciate your patience, commitment and focus on your financial goals during periodic disruptions that often distract other investors from their overall objectives. Our Firm is fortunate to have disciplined investors as clients and are grateful for your trust and confidence.

Sincerely,

Randy A. Garcia, Chief Executive Officer