A few weeks ago, I referenced our increased and continued engagement with our network of managers and industry experts. My inbox, much like yours, is filled with emails about how COVID-19 affects every single aspect of our daily lives. For example, I recently received an email from our pool service provider about the virus and how it affects chlorinated water.
With the end of the first quarter, the amount of market commentary coming through my inbox has exploded over the last few days. Everybody has an opinion about where the market is going next or about something they want to sell.
Like most other financial professionals, I am devouring information and data every single day. I am also immersed in various social media services and mobile apps seeking opinions that complement as well as conflict with ours.
At Sendero, we have our own set of technical and fundamental checklists, and some grey hair, to help us navigate this market. But the reality is, none of us have experienced a sudden shutdown of the economy as we are experiencing, notwithstanding a global pandemic.
Opinions and scenarios vary widely out there- from Hollywood zombie movies to a return to the roaring ‘20s. At the end of the day, nobody really knows how this will play out, especially in the near-term. We could retest the March 23rd market bottom or the worst may be behind us.
Ultimately, we are relying on history to guide us for the long-term: the bottoming process takes 1.6 years on average, half of the S&P 500’s best days happen during bear markets, and time in the market is more important than timing the market.
What you should expect from us is how we approach our asset allocation and investing for your portfolios: pragmatically, confidently, and with a plan and purpose.
If you have any questions or want to have a conversation about the market or your portfolio, please contact Liz, Ed, Fred, Scott, Tyler or myself. Your Sendero team is ready to help.
Amaury de Barros Conti