Market Changes – Keeping a Steady Approach

February 25, 2020

Needless to say, the last couple of weeks have been a rollercoaster in the stock market. Continued headlines about the Coronavirus have stoked additional fear as the world comes to grips with the prospect of this becoming a global phenomenon. Although this creates anxiety for us individually, and the markets based on anticipated effects on business productivity, this is precisely the time that we stand by our investment allocations.

As a reminder, we believe in and are advocates for diversified portfolios exactly for situations like this. A number of other investment advisors believe diversification is achieved by holding equities and bonds. Optivest is advantaged in that we specialize and can include two additional asset classes: Alternatives and Real Assets. Our Alternatives, such as our Longevity Contract funds, exist to not only provide cash flow but to remain completely uncorrelated to the general stock market. Our Real Assets investment, such as our Real Estate holdings, also continue to provide cash flow with a greatly reduced correlation to the general stock market as well. Furthermore, we do not just relegate ourselves to domestic companies; we look at both equities and bonds on a global scale, providing even more diversification.

The sum of our efforts is to reduce volatility and preserve capital, while still capturing upside potential and income. Our diversified strategies have and should continue to provide you confidence that although there will be market swings, over time our disciplined approach will provide more value to you than trying to predict the tops and bottoms of markets.

If you have any further questions, we encourage you to reach out at any time. Rest assured if we do see an event that would change our opinions, we will communicate our strategy and take action.