Let's Reconnect
Last summer, I attended the Morningstar Investment Conference in Chicago. While I was there, I made it a priority to visit the Chicago Art Institute, one of the best art galleries in the world (in my opinion). One of my favorite paintings at the museum is Edward Hopper’s classic, Nighthawks. Yesterday, I did a little photoshopping to make the painting more contemporary for the current COVID-19 outbreak.
|
|
The point is that a lot of us are feeling alone and scared; it feels like there’s a tremendous sense of uncertainty surrounding everything we do. It doesn’t have to be that way. I read a heartwarming story over the last few days about Italians gathering on their balconies and in their windows, singing and making music.
This is a wonderful opportunity to pick up the phone and call that friend or family member who you haven’t spoken to in years. Don’t text or email. Pick up the phone. Have a conversation. Talk about something other than the virus. Ask about kids, grandkids, friends. It looks like we’re all going to be stuck at home for a while, so why not reconnect?
Make sure to call and check on elderly neighbors and friends or family who struggle with mental health issues. Let them know that you’re thinking about them and in limited cases, find out if you can help with supplies.
And while you’re at home, why not break out the board games and jigsaw puzzles. Light up the grill, cook together and enjoy a family meal. Leave the cell phones, computers and iPads turned off. There’s nothing new that we’re going to learn about the pandemic in the short term. So make the best of it!
If there’s any good that we can make from this crisis, let’s do it. Let’s be kinder and more forgiving. Let’s show a level of equanimity when faced with adversity. Let’s connect to each other in a deeper, more meaningful way than just a post on social media. Let’s talk and get to know each other again.
|
|
On to business...
Yesterday, while the market rose 6%, we decided to sell an additional 5% of stocks out of our diversified mutual fund portfolios. I believe there is still considerable underreporting of US cases of the virus. As I said earlier, there is a tremendous sense of uncertainty surrounding the pandemic and the economy. The markets do not like uncertainty and that’s why we’re seeing so much volatility. The volatility will continue for the short term until we start to see some answers and solutions.
The price of oil dropped again today and with it oil stocks. XLE, the oil sector exchange traded fund, is down another 10.5% today (as of noon) and is down 59% on the year. Our fossil-fuel-free investment strategy continues to be a good decision for both the planet and our portfolios.
Neill spent the last day analyzing how our portfolios have performed year to date and I’m glad to say that we’re doing our job of limiting the downside in our diversified mutual fund portfolios. As you can see, the only portfolio that is currently underperforming the indices is the Green Sage Sustainability Portfolio – understandably because it is our most aggressive offering. The rest of our portfolios have been considerably more stable.*
|
|
I believe that our job as investment managers is actually more important during times of crisis than times of plenty. While I never like to say that a negative return is good, whenever we can cushion volatility as we are now, I’m pleased that we’re bringing value to our clients.
We will continue to monitor the situation. Our team, working from our homes, is holding a weekly staff meeting and daily update calls. We’re here if and when you need us.
I’d also like to say that we greatly appreciate your comments – please continue to write us back and let us know what you think of the job we’re doing and if you have any additional thoughts or suggestions for us.
Continue to wash your hands, keep a safe distance from people and enjoy your time at home. We are grateful for your business, friendship and introductions. Thank you!
My Best,
Peter Krull
CEO & Director of Investments
Earth Equity Advisors, LLC
|
|
|
|
