January 2019 Client Letter

Last year ended on a sour note for stock-only investors, with the S&P 500 losing more than 9% in December and more than 13% for the quarter. December’s performance was the second-worst December on record for the index. While we weren’t surprised by the correction, the magnitude of the decline looked excessive given the lack of any meaningful negative surprises.

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December 2018 Client Letter

The New York Times ran a piece in December titled “Investors Have Nowhere to Hide as Stocks, Bonds, and Commodities All Tumble.” The article highlighted the difficulty investors faced in 2018. Most major asset classes fell last year or edged out minimal gains in the final few days of the year.

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November 2018 Client Letter

Here is something I’ve been reviewing with clients that is helping with their unsettledness over the past three months. Most of you have a balanced portfolio, which includes a mix of cash, bonds, precious metals, and stocks. When you hear and read about the market’s decline and the uncertain period ahead, it is wise to remember these nasty headlines are not affecting your entire portfolio. Most of you have approximately 50% invested in equities and the other 50% invested in securities which tend to hold their value or decline less compared to stocks.

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October 2018 Client Letter

When stock market volatility escalates, clients may ask what needs to be done with their portfolio. I explain that often minimal, if any, trading is required. Certainly, heading to the exits is not a strategy we favor.

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September 2018 Client Letter

The 2008/2009 global financial crisis destroyed almost $12 trillion of America’s net wealth. Measured globally, the figure was much larger. Many households and businesses saw their net worth cut in half, or worse. Wealth that had been accumulated over years of diligent saving and investment was annihilated in a matter of months.

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