Hello All,

Wow. What a week – or three

Needless to say, over the past few weeks I’ve had numerous calls and conversations with you, mostly centered on the US election. And as I’ve said, the market won’t really care who wins the American presidency. It wants certainty. So now, if the vote stands as it is, we’ll have a president who controls the house but not the senate, which is still held by the opposition. They will undoubtedly find their fiscal responsibility zeal again and obstruct any spending. Basically, we’ll have no real government intervention in business, and that is technically a good thing for the market.

Many conversations were about the coronavirus pandemic and what happens next. Well, Trump couldn’t keep his promise that there would be a vaccine before the election, but there is now some hope.

It will, however, take time for the vaccine to pass all the trial stages, and even more time for it to hit the streets. In the meantime, there is an end in sight, but between now and then, much will happen. Numbers of cases of covid-19 are growing everywhere, and who knows if there will be another lockdown or serious slowdown?

Volatility will be the name of the game…

How much more will the government spend?

How much will our taxes have to go up to pay for all this?

What will the return to normal even look like?

What’s going to happen to my portfolio?

What can we do to position ourselves for whatever the future may hold??

Any investment that had done well during the slowdown was hit hard by news of the vaccine prospect. The most beaten down and badly affected sectors rose the most (e.g., travel and tourism, REITs and some industrials), while the biggest gainers since March were sold off (tech, tech and more tech).

We have seen numerous rotations like this, and like before, it could be painful to watch. If anything, it should make you focus on your risk tolerance and time horizon.

Continued focus on successful long-term processes and strategies is what gets us through the ups and downs of the market.

Perhaps it’s prudent to revisit your financial plan or maybe take some profit here and there. All in all, you own best-in-class companies, which for the most part can weather the storms of the market today and in the future. I have yet to see the longer-term outlook change for the companies we own. It’s not like everything is going to go back to normal tomorrow.

But if you are worried, please call me.

What else could happen?

As has been said, who knows anything when it comes to things you can’t control? Before the positive vaccine outlook and the US election, the past few trading sessions were even more volatile, with the possibility of more lockdowns coming soon – and not just in Europe, but also here and even in the US.

Best-in-class companies like the ones we own go up and down, but also show continued leadership. They will rise through this. Overall, the economy is actually looking better for the future, which should in turn make the sectors and companies we own do better.

The idea that a vaccine could be developed in a mere eight months is astounding. This pandemic is far from over but it’s important to remember that the recent news says one thing – innovation always wins

So… you’re telling me I should call you?

As I’ve often said, if you are concerned about what’s happening in the market, yes, please call me. Shazia and I are always here for you. If you know anyone (a family member, friend or co-worker) who’s in your situation and would like a second opinion on their portfolio, call me about that too – especially if their advisor hasn’t spoken to them lately.

Thank you

Christian