  |
An open letter to clients April 19 2020
An open letter to clients- If you like what you read contact me to discuss moving your accounts over for me to manage
(530) 559-1214
Greetings!
Reiterated many times in articles and shows, there may be two ways one can make money: buy something that goes up, OR you keep your money while everyone else loses theirs.
When this occurs, your money becomes more valuable. Additionally, retaining funds when markets sell off hard means plenty of dry powder to pick up stocks at lower prices. The lower a market goes, the better the sale price of stocks that were being purchased by investors perhaps at much higher prices.
That said, you can review balances on your website and statements. I hope what you see relieves you of some concern and makes living in this strange world a bit easier.
The opportunities in my opinion are great and a rare event.
Is this an “all in”. Absolutely not. Historically 20% UP moves, which is what we have had in the past few weeks, can be followed by a retest of the previous low. That DOW number would be somewhere in the 18,300 level. Gains which we may now have might all but evaporate back to possible small gains or even break even. (newly opened accounts in February could be the exception as they may have shown immediate red. Fret not, I am working on it). I am aware of the possibility of a retest. Adding only stocks that I thought would fare well in the Stay At Home economy, they may have done extremely well and may even post positive earnings in this upcoming quarter. So far they may have reflected this, or most may have. That said, once this initial euphoria is exhausted, the realization of just how bad the economies of the world have been hit may dawn on investors and a new wave of selling could occur. Additionally, and as penned in my latest articles, there will be bankruptcies. Lots of them, and some very large ones. Each headline of a large corporation going under or seeking protection might shake the markets. Also consider my prognostications. In other words, I forecast the following:
25-30% unemployment levels may be hit
50 million Americans filing for un-employment
25 million mortgage defaults
Obliteration in American small businesses
The wipe out of many small and large energy producers
Sovereign defaults (entire governments)
Massive starvation and poverty levels in many areas of the globe
Massive stimulus measures by central banks worldwide, the ramification of which is unknown
The possibility of massive inflation due to this stimulus
I want to thank you for your support. I hope you feel that I earned it.
I am always analyzing the markets, their movements and the opportunities they might present us. You may notice actions in your accounts, and likely a lot of action. Although I do not like trading massive amounts of securities in your accounts (and likely your accountant doesn’t either) sometimes in my opinion it is necessary. Now is one of those times.
The current event will end. Each day it transpires will be one day closer to its ending. When it does, those that took advantage of lower prices may witness tremendous favorable gains. Gain that may have not been possible when the markets were making new highs. Gains that may even have the possibility of exceeding a regular up market.
We trust the process. And move accordingly.
Wishing you a safe and healthy week.
Marc
“Watching the markets so you don’t have to”
Considerations:
-Move additional funds to take advantage of the possible opportunities
-Annuities for possible income or growth
-Refer acquaintances if you like what you have seen in your accounts
-Transfer other under-performing accounts
- Call me at (530 0559-1214 or email me at mcuniberti@cambridgesecure.com
