Global capital markets continue to brush aside a number of conflicting developments as they stage a strong recovery from the March lows. While many investors may claim this recent rise is remarkable, it is for exactly this reason that my advice to you has been to stick with the long-term plan we built. Months ago, had we imagined a global pandemic, a gradual re-opening of economies after an extended shutdown and protests throughout America all taking place as we head into June, you would have been hard pressed to find someone predicting that markets would continue to move higher right through it. Yet here we are.
In previous letters, we have discussed the importance of sticking to your long-term plan, despite current market conditions. The incredible recovery we have seen since the recent market lows have included some very large gains on certain days, which have caught investors by surprise. By sticking to our plan, we look to avoid the risk of missing out on such days. Conversely, the chart below demonstrates what can happen to those who do try to time market moves.
The markets have continued to rebound in the face of a great deal of uncertainty related to both the progress of the pandemic and the prospects for an economic recovery, further demonstrating the risk of attempting to time your investments based on short-term reactions.
With plans for a gradual lifting of pandemic restrictions now in the frame, I hope that you and your family are keeping well and finding ways to adjust to the changing circumstances. Below you will find a summary of what took place in the markets this past week, as well as some related thoughts.
North American stock markets have rebounded smartly from their recent lows reached in late March, despite the increasingly poor economic data. This shows why it is important to keep in mind that in the short term, no one knows which way markets will move.
I hope this note finds you and your family well. As part of my commitment to keeping you informed in the current environment, this note is something that I thought you should see. Very scary what criminals will do to prey on the public.
I hope you and your family are keeping well during the current state of emergency related to the coronavirus pandemic. I am writing to you again this week to discuss the recent happenings in and around markets.
Easter weekend means different things to all of us, and 2020 will be one we never forget. For some, it’s a long weekend, for others its filled with prayer, and for almost all of us its filled with family and friends. This year it probably felt very different for you. I know for Tracy and I we missed getting together and seeing parents, and our children missed seeing their grandparents and cousins. We will never forget this Easter weekend!
As we continue to see financial markets react to the ongoing coronavirus (COVID-19) outbreak and its related effects, I am writing to you with an update on the latest developments and how to view your long-term cash flow producing investment plan as a result.
You hold a wonderful investment in your portfolio called the Dynamic Equity Income fund, to which we wanted to highlight its cash flow, protection and results over the market volatility we have recently experienced. As you may know, it pays you a monthly distribution and this monthly cash flow has never changed over the life of the fund, creating for you an internal rate of return that is reliable, predictable and especially comforting when the markets are experiencing a downdraft.
