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The Plan

Apr 21, 2020 | Eric G. Cook


Developing a strategy requires a plan developed through multiple conversations that unravel goals and subsequent appropriate steps to accomplish them.

Man walking alongside a mirrored building

Some of you may know that I used to write but haven’t published anything in years. With the recent onslaught of panic generated in both our communities and financial markets by COVID-19 persuades me to put pen to paper.

Recently I’ve been approached for my thoughts, my opinion and most often my strategy on how to navigate the volatility in the market. Literally everyone I speak to wants to know what the plan is… and that’s the issue. I don’t know your plan.

As an investment strategy we believe in buying companies with quality fundamentals that are best in breed, but the what/when to buy aren’t general responses. They’re a product of having multiple conversations that establish personal time horizons and appropriate risk profiles. Conversations that unravel what your short & long-term goals are and then implementing appropriate strategies to accomplish them.

What I’ve been made to realize is that many people aren’t having these conversations. They don’t know the answers to these questions. They don’t have a plan. This is adding another layer to an already difficult environment.

Our clients are not panicking in a surreal, volatile environment simply because we’ve had these discussions in depth. No, not what do we do in a pandemic as no one saw the frenetic pace of this downturn. What we have talked about is what the strategy in a downturn is, how do we weather it and what’s the thinking in how to take advantage of oversold conditions.

These are conversations you must have. These are conversations that are fundamental in the client/advisor relationship. If you are not or have not had them, then either initiate the conversations or find a new advisor. How can someone invest for you if they don’t understand you or your family situation?

I can’t help everyone that’s reached out to me immediately but I’m certainly going to try. Be aware there’s an onboarding process to work with us that takes time and it’s important. We have a process that allows us to construct a portfolio with your specific goal-oriented performance in mind.

So how do you navigate in the present?

Advisors and analysts can compare percentage drops to historical Bear markets and how long it typically takes a market to swing around in a recession. The problem here is that this doesn’t feel like a lot of these historical drops that are drawing comparisons.No, this reminds me of another time, when our concerns were elsewhere while the market spiraled. Our mon

ey wasn’t our primary concern because we were terrified for our families and no one knew what lay ahead.

The uncertainty that surrounded 9/11 is what this reminds me of. Efficient market hypothesis implies markets price with all known material, past and present and that uncertainty is the worst scenario possible. Welcome to uncertainty. Here we are.

Your plan dictates your strategy. In my opinion, there is certainly a wealth of opportunity to capitalize on he

re. I truly believe this historic drop presents a very rare entry-point into equities. Make certain you’re having the conversation that is appropriate to you. Contact us if you would like to discuss your plan.


Wealth planning