On March 10, 2020 we sent the following letter to our clients regarding our response to the Coronavirus outbreak:
Proactively protecting and growing your investments is our top priority.
We want to share a few of the steps we recently took to protect you, our client.
Shifting Asset Allocation:
While no one knows the future, in January and February we did flag an increase in the risks for stock investors. We lowered stock exposure for our clients in a variety of ways including sales and short-sales where appropriate. This raised cash and lowered risk. We also added long-dated U.S. Treasuries to many accounts in mid-February. Treasury bonds often rise when stocks fall.
Lowering Stock Volatility:
Of the stocks we do own for you, we shifted from risky areas like Technology, Emerging Markets and Energy to less volatile investments like Gold and Consumer Staples. We have maintained a large position in Utilities as well.
Once the market entered a down-trend we began to sell more stocks on strength. Fortunately the market has gifted us we a few up-days to proactively risk-manage the funds you have placed in our care.
What to do now:
As always, our goal is to help you make wise financial decisions. These seasons of volatility offer new planning opportunities for you – we are recommending tax-loss harvesting and Roth conversions where appropriate.
We do not know when this period of volatility will end, but our process has served us well thus far. We trust it will help us identify new risks and opportunities in the months and years ahead.
If you have any questions about your account please call us at 318-562-1030.
Scott & Ben
The information contained herein is for informational purposes only, is not personalized investment advice and should not be construed as a recommendation to purchase or sell any particular security, sector or strategy to any individual person or entity. The decision to review or consider the purchase or sell of any security, sector or strategy mentioned should not be undertaken without consideration of your personal financial information, investment objectives and risk tolerance with your financial professional. Past performance should not be considered as an indicator of future results. Securities offered through Triad Advisors, LLC. Member FINRA/SIPC. Investment advice offered through Goss Advisors, a registered investment adviser. Goss Advisors and Deupree James Wealth Management are separate entities from Triad Advisors, LLC.