Today the volatility in the stock markets continued. While these types of events have often occurred; the Coronavirus is unique in that we have not experienced the near global closings of public facilities. As this event continues to unfold, the Federal Government, and the Federal Reserve are lubricating the financial markets with liquidity. These financial interventions now and expected are fairly commensurate with the loss of capital in the markets and will be necessary to stimulate a recovery.
While we believe that long-term exposure to the markets, including the equity (stock) market is appropriate based upon risk tolerances, we took risk mitigation actions in the past few months. Late last fall, we made tactical changes to our investment models lessening risk due to the near record levels of the markets. We are now making additional risk-mitigation moves with our models.
Rest assured, we are monitoring the quickly changing landscape as well as your portfolio and stand ready to answer any of your questions or concerns. Please don’t hesitate to contact either of us.