From the Desk of Dale Crossley and Evan Shear
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
It’s hard to believe we're beginning to reflect on 2022, but we just can’t help it. For investors, this year has been unforgettable and unfortunately, it’s just the kind of year we would all like to forget. We have witnessed the largest loss of investor capital ever experienced. Although it’s been an extremely rough ride, we were recently reminded how fortunate we are when Hurricane Ian ravaged our state. Our team members experienced some leaks, power losses, and had to deal with large amounts of debris. However, our experience is so minor compared to the catastrophe that others in our state are enduring. Our hearts go out to the victims of the storm who lost their property or experienced the tragic loss of a loved one.
We are truly grateful to have weathered the hurricane so well and try to keep the year-long market volatility in perspective as we know others are continuing to suffer. Back in June, we sent a communication letting you know that no one shares your frustrations about the markets more than us. In fact, over the last 25 years, we’ve never seen such volatility. The markets seem to change minute-by-minute each day, and virtually all sectors have been affected. Our team is constantly working to mitigate downside risk as much as possible, while still allowing our clients to reap rewards when it’s possible. Our Voyage process employs a disciplined approach, combining fundamental, tactical, and hedges to help guide our investment decisions. However, when pullbacks (defined as 15% or greater declines in the S&P 500) or crashes occur (defined as 20% or greater declines in the S&P 500), particularly when all sectors are affected, investors universally suffer.
The last three crashes were -57% in 2007-2009, -49% in 2000-2002, and -27% in 1980-1982 and the market proved resilient and recovered. For now, we can all look forward to an eventual recovery, the timing, however, remains to be seen. In the meantime, our team is working harder than ever to manage through this period. That’s why we’re here. If you have questions, or you would like to discuss your portfolio, please reach out.
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There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. All opinions are as of this date and are subject to change without notice. Past performance is not a guarantee of future results.