As communicated to your clients on March 11th, 2020:
I’m writing to you in this time of market volatility to provide reassurance that Goodreid is maintaining its long-established investment approach and to give our perspective of the current state of the financial markets.
In the current environment of public health worries and an oil shock and their effect on your investment accounts, peace of mind and confidence in your ability to achieve financial goals are essential ingredients in a successful investment plan. Without minimizing the current situation, at Goodreid we have navigated many crises, all different in circumstance but similar in reaction. Common to all negative market lifecycles is a period of confusion and speculation, which is toxic to markets and leads to extreme volatility as bull and bear camps struggle to gain the upper hand. What resolves this situation is information and finally resolution. How investors deal with these periods ultimately dictates investment success or failure.
Our foundational work on your account happened long ago, resulting in a strategic plan that anticipated some periods of market turmoil and was built to allow you to traverse these unpleasant times. As you know, your relationship with Goodreid started by creating a foundation to be successful, including setting an asset mix, diversifying your account geographically, and by sector and industry. We created appropriate percentage weightings around your single stock exposure and used our experience to choose securities that had solid long-term business fundamentals. Opportunities to rebalance and realign accounts are continually being evaluated.
At Goodreid, our many decades of experience have taught us that an emotional response is destructive, instead we rely on fact, reason and patience. They have taught us that an emotionally charged market will temporarily lead to prices that do not reflect long term business fundamentals. Finally, our experience has taught us to be confident that we are prepared for these periods, to keep our eye on the horizon and understand that ultimately all pricing will reflect fair value based on economic and business fundamentals.
To feel nervousness and uneasiness during times of turmoil is natural. By letting you know our perspective, our experience and our plan, we hope that you will have even greater confidence in your financial future.
Gordon A. Reid
President & CEO
Goodreid Investment Counsel Corp.
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