THIS TIME THINGS ARE DIFFERENT, OR ARE THEY?
Over the last few weeks, we have sent emails to our clients outlining historical events of past market periods. One could always say, “this time things are different”, as we have never seen a pandemic like Coronavirus. Although bear markets are sometimes event driven and every event is different, some things remain the same. One of the things that generally remains the same during high stress market periods, is investor psychology and emotions. At the highest peak of uncertainty and fear, it feels like the world is going to end and your life will never be the same. Well, the “world only ends once”, and it did not end after 2000-2003 when technology companies blew up. Moreover, the financial markets and the United States economy recovered following the Market Crash of 2008 and 9/11. As of February 19, 2020, the S&P 500 Stock Index set an all time high of 3,393.52. I could argue, and be supported by history, that your greatest risk over the long-term is to be invested in cash, not in stocks.
So please remember, the core issue is that this is a health crisis. The resolution will most likely come when we have indications that the virus is under control. It doesn’t have to be actually under control because the market isn’t going to wait for a clear signal. Everything I read tells me the world is coming together in an unprecedented way. Although most countries are shutting down their borders for the right reasons. Scientists from around the world are coming together and collaborating in ways we have never seen before. The World Health Organization says there are over 20 vaccines in development and many companies are working on therapeutic treatments.
I can tell you that everyone at La Ferla Group is working very hard to manage our way through this crisis on behalf of our clients. We have good investments in the Global Balanced Advisor, Growth Equity Portfolio, and Diversified ETF Portfolio, that we believe over the long-term, will continue to perform well relative to the appropriate portfolio benchmark (market index-comparative index). As we continue to evaluate our research consensus, we will make the appropriate changes.
This year, La Ferla Group enters 40 years in business managing investment portfolios and working with our clients and their families. We have not let you down in the past and we will not let you down now; however, we need your continued trust and confidence in us to have a successful outcome.
I leave you with this: Investors do not lose money because of down markets. Investors lose money as to how they react to down markets.
God bless you all and stay safe.
The information contained herein was obtained from sources considered reliable. However, its accuracy or completeness cannot be guaranteed. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
La Ferla Group does not provide legal or tax advice. You must consult with your legal or tax advisor regarding your personal circumstances.
Contact La Ferla Group if you have any questions; if your financial situation, individual needs or investment objectives have changed; or if you would like to impose or change any investment restrictions on your account(s).
La Ferla Group LLC (“La Ferla Group”) is a federally registered investment adviser with its principal place of business in the State of New York. Registration does not imply a certain level of skill or training. This brochure is limited to the dissemination of general information pertaining to its investment advisory and management services. For information pertaining to the registration status of La Ferla Group, please contact La Ferla Group or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). FOR ADDITIONAL INFORMATION ABOUT LA FERLA GROUP, INCLUDING FEES AND SERVICES, SEND FOR OUR DISCLOSURE BROCHURE AS SET FORTH ON FORM ADV FROM LA FERLA GROUP USING THE CONTACT INFORMATION HEREIN. PLEASE READ THE DISCLOSURE BROCHURE CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
Joseph A. La Ferla Jr., Managing Principle