“Nothing can basically stop America”. “The American miracle, the American magic, has always prevailed and it will do so again”. Those are 2 quotes from Warren Buffett at Berkshire Hathaway’s first ever virtual shareholder meeting this year.
More and more states are slowly opening and letting people go back to work. Countries like China, Italy, Hong Kong, and Singapore are also opening up and letting commerce begin. And, as evidenced by the protests all over our great country, Americans want to go back to work.
The equity markets are trying to recover as well. US indexes have bounced off their market lows in March anticipating what life might be like after the Covid-19 crisis is somewhat in our rear-view mirror. Stocks often rebound before the economy does. Investors are forward-looking and they are buying in advance of – and in anticipation of – better days ahead. The attached article is a good read about current equity market conditions and reasons for the bounce.
Two components of the Winning Points Advisors portfolio beat their comparative indexes by nice margins since their March 23rd lows through most of April. The large cap fund was better by 37% and the small cap fund better by 61%. Their other strategies have lagged but they are hopeful that, as things continue to settle down, they will come along as they have in the past.
Investing does not have guarantees and there will likely be some bad days ahead. While progress on treating the virus and finding a vaccine are moving forward, we are still short of an open society. However, I personally believe that the free market economy and the governments working together will move us toward treatment and, hopefully, a vaccine.
As always, should you have any questions or wish to talk, please don’t hesitate to email or call me. Now, let’s all go out make each new day we get better than the last one. BTW, I can’t wait to take Jean out for dinner.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.