Just a quick update on the markets and the recent volatility.

 

The current market action has seen a 4% decline off of the all-time high and at this point, the move is not significant.

On average, we should experience two 5-10% corrections in any given year. We have not had a pullback above 5% in 13 months and a healthy breather was overdue.

 

That being said, the market effect of the CovID-19 virus is extremely difficult to forecast. The human toll is of our first concern.

Obviously, quarantines and travel bans have significant negative impacts on supply chains and the economy.

 

There are still many unknowns with the virus.

• How effective will containment efforts be?

• The duration and breadth of this potential pandemic is unknowable.

• Is the virus seasonal, like the regular flu?

• How fast can a treatment or vaccine be found?

• Duration is difficult to predict.  We don't know if this is a 3 month problem or a 12 month problem. 

We made the risk management decision to reduce our stock market exposure in the past 30 days, after a significant run up.
With our cash positions elevated, we are very comfortable with our portfolios and are continuously monitoring the situation.  

As always, if you have any questions at all, please do not hesitate to reach out to any member of our team.