We wanted to reach out and share thoughts from our President, Cory Krebs, regarding the recent market volatility we’re experiencing.
With another tumultuous day in the stock market coming to close, I wanted to touch base to highlight our current thoughts. Emotion is always a pernicious factor in the investment process and that is never more true than when investors succumb to panic. While the current market environment may have investors feeling that we’ve entered unprecedented circumstances, it is important to remind ourselves of times in the not-too-distance past that help bring clarity of thought to our present-day environment. The specific details and precipitating causes of market volatility always have unique aspects, but the general tenets of current concerns have many parallels. In the wake of the terrorist attacks of 9/11, supply and demand forces suffered acute short run disruptions which had the potential to last far beyond a quarter or two. Furthermore, our confidence as a nation was shaken and a sense that it was all to become very different was palpable. However, these impacts, while significant, were ultimately transitory with domestic prosperity and equity gains returning much sooner than many anticipated. Looking back nearly two decades later our memories fade and our focus shifts towards current events. In these times of heightened emotions, acting in the absence of a plan is highly detrimental. This is why the approach employed at CooksonPeirce seeks to set emotions aside and focus on a repeatable process that starts with the development of an appropriate asset allocation and continues through the implementation of investment decisions. More now than ever, the role we play for our clients expands well beyond the purchase and sale of securities. Our most valuable contribution can often be in simply reorienting the focus from the emotional concerns of today to the largely unchanged achievability of long-term objectives. We appreciate the confidence that you have shown in us and are committed to exceeding your expectations.
Thank you for your patience – stay safe and healthy!
The CooksonPeirce Team