Summit Investment Commentary and Resources
We hope your families are all healthy and safe as we buckle down for another month at home in Ohio!
How do we get from Now to Next?
Today we wanted to share our investment committee’s current perspective on what lies ahead.
We expect to experience a short and deep recession, which will not reach the severity of a depression.
Medical experts are indicating we will have an effective vaccine in 12 to 18 months. If this timeline is reasonably accurate, we expect Q2 and possibly Q3 to experience a major downturn in GDP and corporate earnings. This expectation is already reflected in the markets. Recovery will likely begin in late 2020, with the markets rebounding prior to economic indicators. 2021 and 2022 are expected to be years of healing while unemployment, GDP and corporate earnings rebuild to pre-virus levels.
In order to take advantage of the recovery, it is critical to follow the discipline of your Investment Policy Statement. It will force you to rebalance even when you don’t want to, and we believe you will be better off in the long-term by doing so. Every financial downturn and crisis in the past, no matter what the triggering event, has proven this to be true.
Finally, sometimes a market downturn makes us realize our risk tolerance isn’t what we thought it would be. That’s a totally normal and natural response. It is important to communicate that to your advisory team so we may consider making adjustments when the markets have recovered. It can be difficult to remember how bad markets feel during a strong market upswing, but it is important to do so.
If you are interested in hearing market commentary and perspectives from investment professionals we follow and trust, here are a couple of resources:
On Monday, April 6, 2020 at 4:30 PM EST, Liz Ann Sonders, Schwab’s Chief Investment Strategist, will discuss the latest economic data and market indicators.
The presentation will be available live at: https://www.schwab.com/public/schwab/active_trader/trading_insights/schwablive
On Thursday, April 9, 2020 at 2:00 PM EST, Dimensional Fund Advisors (DFA) is hosting a webinar to provide insights on financial markets and recent volatility.
You may sign up at: DFA Market Perspectives Registration
We are here for you
As a reminder, we continue to be here for you and your family. Summit is operating at full staff capacity and welcome your calls and emails. Our goal is to provide uninterrupted service, especially when you need us the most. If you are having any issues reaching a specific associate, please refer to following list of extensions and direct dial numbers.
|(614) 885-1115 Ext.||Direct Dial|
|Austen Harrison||1036||(614) 396-3896|
|Ben Murray||1021||(614) 396-3882|
|Ben Skinner||1023||(614) 396-3890|
|Brian Sutliff||1030||(614) 396-3887|
|Clayton Kreuz||1046||(614) 396-3888|
|Hannah Fetterman||1027||(614) 396-3891|
|Joe Reardon||1016||(614) 396-3878|
|Kate Coghill||1034||(614) 396-3894|
|Kevin Kruse||1060||(614) 396-3906|
|Lesa Fitzpatrick||1020||(614) 396-3881|
|Liam Hurley||1013||(614) 396-3875|
|Luke Salcone||1033||(614) 396-3893|
|Mark Coffey||1019||(614) 396-3889|
|Matt Garasic||1056||(614) 396-3905|
|Matthew Daniel||1058||(614) 396-3908|
|Mike Scherer||1018||(614) 396-3880|
|Roman Korolchuk||1059||(614) 396-3907|
|Samantha Macchia||1015||(614) 396-3877|
|Summer Gillard||1025||(614) 396-3884|
|Ted Saneholtz||1029||(614) 396-3873|
|Tiffany Stover||1012||(614) 396-3874|
|Tim Swain||1028||(614) 396-3886|
|Wendy Trout||1017||(614) 396-3879|
|Zoe Donohue||1031||(614) 396-3899|