We hope you and your family are staying healthy & safe as the week unfolds. Please find our thoughts as of Monday, April 6th 2020:
Today’s market action represented a true bear–market rally, reminding us that in times like these, we need to focus on the long-term goals of our portfolios, rather than the emotion-inducing day–to–day market movements.
There is no rational explanation for the 1600+ move up the Dow Jones today, other than to expect the unexpected as the impacts of COVID-19 unfold. This volatility is reminiscent of 2008, 2001, and 1929 – it is not unusual.
In the spirit of the first two sentences, today’s attached commentary is from one of our esteemed our portfolio managers, Riverfront. Riverfront’s commentary speaks specifically to concentrated positions in investment portfolios and reminds us to never fall in love with a particular company or investment.
It is our belief, and the theme of the article, that a concentrated position in one’s portfolio represents more than 10% of that portfolio and should be viewed with heightened attention.