2020 Q1 Review

I know your inbox is overwhelmed by messages related to the virus, but I hope you’ll allow me just a few minutes of your reading time to cover three points:

#1 Your Investments are OK

Profile                                                             2020 Q1 Net of Fees
Risk Avoider                                                       -1.36%
Risk Mitigator                                                    -3.97%
Risk Manager                                                     -6.98%
Risk Taker                                                           -11.16%
Risk Embracer                                                   -19.77%
Tactical Risk & Income Strategy                    -1.10%
Tactical Risk Strategy TRS                              -3.07%
SB Moderate                                                       -4.67%

Market Indexes
S&P 500                                                             -20.00%
S&P 400                                                             -30.03%
S&P 600                                                             -32.94%
EAFE                                                                   -23.43%

“It’s not about returns; until it is.”

The general focus in financial planning is having a plan and someone to help you make the right decisions at the right times to get you to your best financial future. We all need a good financial plan and financial advocate. During extraordinary times such as these, I want to assure you that we at Trademark, as your financial advocates, strive to adjust portfolios within risk profiles to mitigate what could otherwise result in catastrophic losses – both on the mathematical and emotional spectrums.

Thus far, we believe our conservative-leaning clients have weathered the market downturn well. A typical early retirement portfolio of 60% stocks and 40% bonds has been down 20% during this bear market.  As the financial media reports large losses for “conservative” investors, please remember that we are actively managing your portfolio to avoid that type of pullback.

For our aggressive-leaning investors, we’ll continue to strive to be more effective in the changing economic environment. We believe opportunities are building and when we feel it appropriate, we will invest in ideas we believe have significant potential.

Given history and economic research, we don’t believe the market bottom has been reached. A global economic shutdown is unprecedented and the expectations range from a deep recession to the possibility of a depression. We expect the markets to be volatile with good news on the coronavirus front creating positive reactionary gains in the equity markets. However, economic numbers will continue to tank at record speeds, and we believe it’ll be difficult to contain market losses at the current levels—at least for the next several weeks.

#2 We’ll Get Through This

For the first time in the history of mankind, the world is united on a singular quest.  Historically, a crisis pits man against man—this time humankind has a common enemy. We do see hope in the global economy. The shutdown isn’t just a U.S. event; it’s a global event. With the right combination of stimulus from Central Banks and Governments, the recovery from a deep recession may be much faster than previous deep recessions. “This too shall pass.”

#3 How Can We Help You?

If you need help understanding how the CARES Act can benefit you, or if you want advice on the Paycheck Protection Program, please let us know. Or, if your situation has changed, or you have questions of any kind, please reach out to us. We’d love to help you where we can.

Also, thank you again for the referrals during this period. There isn’t a finer compliment!

Sincerely,
Joe Ezernack

Learn more about our offerings

Target Date Funds Managed Accounts