We understand that the recent stock market volatility, driven by factors like evolving trade policies, can be unsettling. We want to assure you that we are closely monitoring the situation and remain confident in our long-term investment strategy.
In many respects our cautionary stance adopted early this year with ample cash and downside protective hedges in our equity fund has placed us in an exciting position. We are positioned to profit from the turmoil.
None the less, it's natural to feel concerned when news headlines are filled with market fluctuations. However, it's important to remember that markets frequently experience periods of volatility. Many investors are reacting emotionally to the news, leading to short-term selling pressures. This creates opportunities for those who maintain a disciplined, long-term perspective.
Our Approach:
Unlike many portfolios, our investments have limited exposure to sectors directly impacted by current trade uncertainties. We focus on companies with strong fundamentals, high profit margins, and the ability to adapt quickly to changing economic conditions. We avoid highly cyclical industries, which are more susceptible to short-term market swings. Think of our portfolio as being built of companies that are less affected by the current news cycles.
Seeing Opportunity in Volatility:
We view this market downturn as a temporary sale. The companies we invest in are fundamentally strong, and their long-term value remains intact. The current market conditions present an opportunity to acquire these high-quality investments at discounted prices.
Focusing on Long-Term Fundamentals:
As Ben Graham famously said, ‘Mr. Market is a voting machine in the short term and a weighing machine in the long term.’ While recent market activity might dominate the news, we focus on the long-term fundamentals that drive value. We know the news is filled with alarming headlines, and those stories are easy to recall. However, it is important to remember that long term data and researched positions are what we base our decisions on.
The Consumer and the Broader Economy:
A key indicator we monitor is consumer spending, which represents a significant portion of the economy. While some businesses may be experiencing uncertainty, consumer spending remains strong. This reinforces our confidence in the underlying strength of the economy.
Looking Ahead:
We attend investment conferences and conduct thorough research to identify long-term trends. We are excited about the future of business and the opportunities that lie ahead for patient investors.
Our Commitment to You:
Our team has extensive experience navigating market fluctuations. We have a proven track record of protecting our clients' assets and identifying opportunities during periods of uncertainty. We are here to answer any questions you may have. Please don't hesitate to contact us to discuss your portfolio.
