Dear Clients and Friends,
Since we composed our last message to you on Thursday morning, the Dow dropped an additional 1500 points. In our view, the market entered deeply oversold territory, at least given data currently available. Therefore, toward the end of the day on Friday, we began a limited and measured buy into this dip. After our purchase, the Dow climbed 650 points. By the end of the day, that position was already up 3%.
This was not a large purchase. Roughly speaking, it was only one quarter of the funds we’ve identified as deployable if the markets continue to disintegrate. We think there is an equal chance of the market opening down or up on Monday morning.
This will be a short or medium-term re-allocation. Long term, we are still calling for a recession; the severity of which could be amplified by continued supply chain interference caused by the coronavirus.
Remember, for the last year, almost all clients have had a lower-risk investment allocation than they traditionally have. The “dip buy” referenced above does not change that. If you, as a client, were 4 “notches” less aggressive than you were a year ago, as of Friday, you are likely 3 “notches” less aggressive than you usually are.
We will continue to monitor the situation very carefully. We are long term investors. But we will continue to be proactive in tactical positioning when opportunities arise.
Have a lovely weekend.
-MOR Wealth Management
Matthew Ramer, AIF®
Principal, Financial Advisor
MOR Wealth Management, LLC
1801 Market Street, Suite 2435
Philadelphia, PA 19103
P: 267.930-8301 | c: 215-694-4784 | f: 267.284.4847 |
601 21st Street, Suite 300
Vero Beach, FL 32960
firstname.lastname@example.org | www.morwm.com
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