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2020 Newsletters

The bear market of March 2020 has been the quickest to recover to bull market in history. The market has rebounded from its lows in March and the technology-heavy NASDAQ is hitting new all-time highs in the midst of the pandemic. This recession was not caused by over-exuberance or by a bubble but rather by an exogenous event. While the landscape coming out will look different, we believe that we will enter a new paradigm in the economy where strong and innovative companies will thrive, over-indebted and weaker businesses will fail and there be a greater push than ever for US-domiciled supply chain independence and nationalism. Staying invested with minor tactical modifications will prove the best method for generating steady returns and upside participation as the good times, we all so dearly look forward to outweighing the bad. At least in the stock market.

Stay healthy and stay optimistic. Long-term goals are still achievable.

Respectfully,

Leslie, Matt & Optivest’s Investment Department

No one knows how quickly public-health officials will contain the coronavirus. The situation remains very fluid as rescue checks to taxpayers and loans to small businesses and self-employed parties are still in the works. There is likely another round of fiscal stimulus coming and we hope it works to assist borrower workouts with lenders.

Our strategy for the next couple of months is to reenter the stock market with the cash we raised early in the market drop as well as proceeds coming in from recent real estate sales. We have gotten a technical signal that we are in the clear for the market to recover. We already see a great recovery on NSA which we added to in the mid-’20s during this bear market and the preferred stocks we nibbled at. Gold has done really well to date. Going forward, we are buying individual stocks with strong credit and healthy balance sheets and are well equipped to thrive in a normalizing economy and have solid cash positions to survive a credit-constrained environment. We are also moving cash into our US-centric growth strategies as we continue our focus that the US is the most innovative and dynamic economy. Some reassuring stats to keep in the front of your mind:

The US will likely lead the charge to create a vaccine against COVID-19 and can look forward to seeing all our loved ones again soon. We will continue with our weekly news blasts to keep you apprised of our thoughts and progress. Through all of this, we encourage all of you to remember your long-term goals, be well and stay healthy.

Respectfully,

Leslie, Matt & Optivest’s Investment Department