To our clients and friends,

Summit is committed to the health and safety of each of you and our associates. As news of the coronavirus has evolved over the past several days, we feel it is important to communicate how we are responding to these developments.

Our priority continues to be providing timely client service. If necessary, all advisors and traders are set up to work remotely to respond to and address your needs. Our technology team has been at the forefront in protecting client data in a virtual environment to be there for you no matter what.

We have other ways to meet with you besides in person. One important way in which we can protect you and our associates is to offer virtual meetings, which limits the need for in-person communications and unnecessary travel. We have been using this technology to work with clients all over the country for several years. For the next three weeks, we will also do virtual meetings for local client meetings.

We are doing our part to promote health and prevent the spread of illness. Team members are always encouraged to stay home if they are not feeling well.

At the end of this unprecedented and tumultuous week, we also want to provide some perspective on the market volatility we have experienced.

The most recent bear market started in October 2007 during the global financial crisis and lasted 17 months. During this time, the S&P 500 declined 57%. In March 2009, the bull market began and the S&P 500 earned 378% though the end of 2019. Historically since the crash of 1929, there have been 12 bear markets with average market decline of 42% and average duration of 22 months. There are many different factors and circumstances to each of these market corrections, but the one thing they all share in common is they ended. The bull markets that followed had average returns of 164% and average duration of 54 months.

Markets and individuals do not like uncertainty and the coronavirus is unprecedented in modern times. The economy and job market were robust going into this bear market and we believe they will recover on the other side of this. The measures that have been put into place this week to tamp down the spread of the virus will result in a decline in economic activity. How much and for how long is anyone’s guess, but markets typically lead such economic recoveries.

What we do know is that a stock market loss isn’t permanent unless the stock is sold.  We know that tax loss harvesting and rebalancing benefits investors long-term. And we know that even the most difficult times will pass.

Finally, thank you for the continued trust and support you have put into our firm and people. We will continue to be there for you and your family, providing advice and a sounding board for the good and difficult times in your lives. Please reach out to me or your team members directly with any concerns.

Sincerely,

Samantha Macchia, CFP®, ChFC
President/CEO