In the first video, we focus on the COVID-19 global pandemic and its impact on each and every one of us. For those of you who just want the “high-level overview” we start with a summary of how we see the pandemic affecting markets and what we are doing about it. We then dig deeper into the details where we outline the latest statistics, and how we’re watching the new case count data to see when the curve flattens. We provide a summary of the intervention measures that central banks and governments have taken to shore up liquidity and boost confidence, and how we see this playing out and when things will move back to some sense of normalcy.
In the second segment, we outline the impact of this “Black Swan” event (meaning, something that is totally unexpected and rare) on world markets. We show how equities recorded the shortest number of days to hit a bear market and we outline how government measures and reassurances for the foreseeable future are soothing markets.
In the third and final segment in our series, we focus on our model portfolios, the action we had taken last year to protect portfolios and how this has worked out during these unprecedented times. We remind clients that over long time periods, markets have been positive and that volatility is a normal part of investing. We give a snapshot of what emotional investing can look like and why one needs to be very disciplined to avoid making poor decisions during stressful times. When you own good quality businesses, you can rest assured that they will make it through this tough patch and emerge out the other side in a position to continue growing and sustaining the payments of their earnings (dividends) to you their owners. This is what we aim to do when we invest your capital.