Whiteford Wealth Management, Inc.
404 Broadway Street, South Haven, MI 49090
Tel: (269) 637-4400 Fax: (269) 637-4407
April 1, 2020
Welcome to our first quarterly market update and recap for 2020. We are currently facing a crisis that spans the globe and we continue to see unprecedented actions taken across the differing continents in response to the COVID-19 pandemic. This has impacted all of our personal lives to a great extent. The personal sacrifices that we have endured and will continue to endure for no less than the next month will dictate, in part, how the underlying conditions of the global economy will weather the storm. Businesses have shut down their operations. Manufacturers have retooled their enterprises. Schools have cancelled in-building learning capabilities. But, more on that later. For right now, we sincerely hope and pray that you and all of your loved ones are safe, healthy, and emerge from this calamity together, stronger than ever before.
We have a wealth of topics to discuss so here is an outline of this update:
- Brief Overview COVID-19;
Response to COVID-19;
- Stimulus Package;
- Small Businesses;
- Election Year;
- Interest Rates;
- Economic Outlook: 12 Months & Beyond;
- U.S. Response to COVID-19;
- Moving to Cash & Return to Markets;
- Current Portfolios & Contemplated Changes.
|Name of Index||Jan. 2, 2020 (close)||Apr. 1, 2020 (close)||Percentage Change|
|Dow Jones Ind. Avg.||28,868.80||20,943.51||-27.45%|
|CBOE 10-Yr (^TNX)||1.882%||0.635%||-66.26%|
|U.S. Bond Index (AGG)||112.68||114.73||1.82%|
|Name of Index||Jan. 2, 2019 (close)||Apr. 1, 2020 (close)||Percentage Change|
|Dow Jones Ind. Avg.||23,346.24||20,943.51||-10.29%|
|CBOE 10-Yr (^TNX)||2.661%||0.635%||-76.14%|
|U.S. Bond Index (AGG)||106.57||114.73||7.66%|
Please be advised that the percentage change in yields in bonds do not necessarily represent a similar increase in value, it only serves to show you that a substantial change in interest rates has occurred—although it does in fact affect the values of outstanding bonds. Generally speaking, when interest rates rise, bond values fall. Also, many stocks of the DJIA and the S&P 500 have dividends which are not included in the NAV’s percentage change on the associated index. Most NASDAQ companies have historically lower dividends but they are also not quantified here. The U.S. Bond Index has historically been almost entirely driven by dividends of interest payments, so any change in value in the above chart is entirely due to appreciation—or when negative, depreciation—in the value of the underlying bond market.
Let’s compare these figures to our foreign counterparts around the globe. We’ll do so by comparing the major indexes of Germany, China, UK, & Japan.
|Name of Index||Jan. 2, 2020 (close)||Apr. 1, 2020 (close)||Percentage Change|
|SSE Comp. (China)||3,085.20||2,734.52||-11.37%|
|FTSE 100 (UK)||7,604.30||5,454.57||-28.27%|
|Nikkei 225 (Japan)||23,656.62 (Dec 30)||18,065.41||-23.63%|
|Name of Index||Jan. 2, 2019 (close)||Apr. 1, 2020 (close)||Percentage Change|
|SSE Comp. (China)||2,465.29||2,734.52||10.92%|
|FTSE 100 (UK)||6,734.23||5,454.57||-19.00%|
|Nikkei 225 (Japan)||19,561.96 (Jan. 4)||18,065.41||-7.65%|
During times like this, we must be diligent in remembering that investing is a long-term game. Doing so compels us to look at where we were just 4.25 years ago, as illustrated in the next chart.
|Name of Index||Dec. 31, 2015 (close)||Apr. 1, 2020 (close)||Percentage Change|
|DAX||10,743.01 (Dec. 30)||9,544.75||-11.15%|
|Nikkei 225||19,033.71 (Dec. 30)||18,065.41||-5.09%|
Source: Google Finance
Please also look to the following website for MCSI data on all countries listed (click the country tab about 1/3-way down). Look at the YTD and the rolling 1, 5, and 10-year periods.
Clearly, the United States and the companies here continue to have been the best place to “park our money” for the last handful of years. We currently see no reason to stop advocating for our clients to do the same within their equity positions.
Brief Overview of COVID-19
We won’t go into the full medical specifics of this, but COVID-19 is a respiratory illness that attacks certain cells in our lungs. The victim typically suffers from fevers, achiness, and other flu-like symptoms. What makes this particular strain of coronavirus—“virus of the crown/head”—lethal is the fact that it attacks the ability of the body to effectively produce the mucus lining of its host’s lungs. This leads to fluid build-up and pneumonia. While it is not nearly as deadly on an individual basis as many other well-known pathogens, the fact that it has a moderately long incubation period and that it is easily spread via any airborne contact with the ears, nose, eyes, and mouth of unsuspecting victims creates the misfortune that we see before us.
According to sources, roughly 80% of those infected show little to mild symptoms and can usually refrain from hospitalization. The other 20% of victims suffer from more serious issues, but roughly half of those cases can make it through the illness with a simple house-arrest. About 10% of all cases require hospitalization. Of those, half require more extreme measures, such as ventilator treatment to aid in life-assisted breathing. Currently, depending on the healthcare providers and resources available in any given country, the percentage of confirmed cases leading to death ranges from 0.5% to exceeding 11% in countries like Spain and Italy. We still don’t have any sort of reliable data from China, and India is just beginning to confirm cases of the virus. Ultimately, the more concentrated population centers are and the less available resources, one can imagine that confirmed cases represent only a small percentage of the devastation brought on by COVID-19.
Despite it’s horrific toll on human life, from the very beginning nearly all analysts agreed that this virus would be more devastating to the world’s economies, especially to those countries not equipped to handle it.
United States Economy
- U.S. Response to COVID-19
The earliest reports on the novel coronavirus began emerging towards the end of 2019. Many noted it as “some new disease originating in the wet-markets of China” and it was far from front-page news. By the time January rolled around, it was beginning to make some headlines but it was still taking a backseat to stories focusing on the tragic loss of Kobe Bryant and his daughter, among other seemingly more important stories of the time. Once February came, we were beginning to see signs of economic disruption emanating from Chinese producers because of the fast crackdown they implemented nationwide which led to tremendous issues in their supply chains. Still, though, the thought of any sort of “Stay at Home Orders” or quarantines were not being seriously contemplated. Instead, the Federal Reserve began lowering the Federal Funds Rate and the stimulus checks that were being considered were thought of as proactive approaches.
Fast forward to March. The markets across the globe had a steep decline and State and Municipal governments, especially those in major cities, began enacting such orders and recommended quarantines. Stimulus checks and further Federal Reserve intervention became not only a reality, but a requirement. Cases were being reported in major US cities and necessary supplies were being ordered. Many manufacturers began retooling their lines to accommodate the production of these necessary supplies in the wake of both their suppliers in China being behind and the prospect of receiving large profits from such supply production.
- Quarantines and Economic Stimulus Packages (CARES Act)
Now entering April, we have an understanding of at least the first steps that will be taken to handle the economic setbacks that will befall this country. The “Stay at Home” orders, or quasi-quarantines, began with the issuance of California’s. By March 23, there were nine statewide orders; by March 26, there were twenty-one; and by March 30, we are now up to thirty statewide orders. Including the variety of counties and cities that made orders in lieu of statewide intervention, we now see roughly 90% of the population under quasi-quarantine.
References to historical utilizations of such executive orders typically include the now-familiar phrase of “flattening the bell curve”. We tend to agree with these sources and pray that it works as effectively as its champions espouse; however, we eagerly wait to see what sort of legal precedents such actions set for future generations.
With the passage of the CARES Act, $1,200 rebate checks will be issued to roughly 90% of the country’s adults. A further $500 rebate will be issued to each qualifying child’s claimants. Remember: this rebate is an assumption that these individuals’ 2020 Form 1040s (Individual Tax Returns) will mimic those from 2019, or 2018 if 2019 is still yet to be filed, and as of today, it may be deducted from whatever total refund they would otherwise receive from filing their 2020 tax return. It is a non-taxable event and is essentially a no-interest loan from the IRS, as no interest or penalties will be attached to the payment should the net check be more than whatever refund that individual would have received otherwise. Additionally, individuals laid off will temporarily receive an additional $600/week in unemployment pay and their employers will not be penalized for laying them off. That’s a steep increase from the nationwide average maximum payment of roughly $300/week that we had beforehand.
Billions in dollars of grant money will be issued in the form of checks of up to $10,000 to each small business that has been most affected economically—typically those in the restaurant and bar industry. The SBA is guaranteeing loans to small businesses that continue to make payroll, mortgage/rent payments, and other qualifying necessary expenses. Direct funding to industries such as the cruise lines, airlines, and others directly involved in the tourist/travel industries. Payroll and estimated income taxes are deferred. Further stimulus is expected but is still tabled. Further quarantines are expected but still tabled.
- Election Year Volatility
Further complicating the COVID-19 crisis is the fact that this is also an election year. These years are usually more volatile than others. Each debate contains a plethora of statements about what differing candidates for key positions want to do in their official duties. Those statements typically contain preferences about what that candidate would like to do, if they win. It’s the reality that we live in. The government exercises a great degree of control over our lives by stimulating or sanctioning/controlling particular market sectors.
Further, there are underlying political reasons for some of the actions taken by the numerous State and Federal officials. Some want to be seen as “taking a hard stance against the virus”. Others would like to be seen as “letting the free markets do what they do”. Here in Michigan, Governor Whitmer has chosen to refuse signing relief packages procured by her own legislature in lieu of waiting for the Federal Government to foot the bill. We don’t know who’s wrong in this situation, but politics are certainly at play. Taking a step back, the fact remains: election years lead to volatility. The fact that we have a pandemic on our hands concurrently makes it all the more unfortunate.
- Interest Rates & Fed Monetary Policy
The Federal Reserve, from 2008-2011, injected more than $11 Trillion into our economy. This was discovered in the court case Bloomberg L.P. v. Board of Governors of the Federal Reserve System and subsequent findings/reports by the Federal Reserve. Thus far, they have committed to injecting over $2.2 Trillion with the prospect of doing an additional $4 Trillion immediately thereafter. Additionally, they have lowered reserve requirements for its member banks from 20% to 0% for the time being. Naturally, one must account for inflation between 2010 and 2020. Additionally, one must also account for the much larger market capitalization rates of US companies that have occurred over the last ten years. The largest U.S. companies have done what they thought that they would do just ten years ago in the wake of the financial crises: they’ve taken over much more of the world’s markets with cheap debt and economic devastation overseas. Simply stated: more money is needed now than was needed before as the economy has grown much larger.
Such an injection poses a real problem for the U.S. debt/GDP ratio, but it looks like we are in familiar company with many of the world’s central banks who are doing precisely the same thing relative to their host country’s respective economic might. The U.S. should be able to continue to service this debt with the reduction of the Federal Funds Rate to post-2008 levels: 0.00%-0.25%, as the yield on a 10-year T-Bond is only 0.635%! That’s not a new issue T-Bond, of course, but it gives us great insight into what new issues might hover around in the immediate future.
- Trade War(s)
Saudi Arabia recently decided to slash the prices of crude oil resulting the rest of the OPEC nations in doing the same. This was an indirect attack on Russian economic interests, as the cost of oil production between the two nations are starkly contrasting. In short, the Saudis breakeven point on a barrel of oil is far lower than that of the Russian model. Luckily for U.S. energy interests, there has been an exceptional amount of research into cost-effective methods for extracting oil and gas from North American deposits. An infrequently discussed aspect of the CARES Act also suspended the implementation of environmental controls on the industry temporarily.
All of this bodes awfully for Russian interests, as much of the overall Russian economy is driven by the sale of natural resources (commodities), all of which are heavily influenced by the price of crude oil, as discussed in a prior Market Update at length (Petrodollar). It also places a thorn into U.S. energy companies’ economic outlooks as well. If prices of oil and gas stay low because of the trade war, then this industry, which makes up approximately 10% of the entire BBB and lower-rated debt market, may have issues making payments on their debts. Coupled with a devastating drop in demand “at the pumps” because of COVID-19, what we feel is the weakest point in the U.S. economy is exposed: the energy sector.
How this all pans out over the course of the coming months and years is yet to be seen. However, it is something that is incredibly important to us and we look forward to keeping a diligent eye on the industry’s prospects. We will also continue to keep a close eye on the U.S./Chinese trade tensions; however, there is not much to report for this prior quarter. Most of mainland China was under quarantine for much of it.
- Economic Outlook
Let’s now take a step back. What does this all mean for our model portfolios? First, let’s talk about interest rates. The steep reduction in interest rates allows many of us to refinance the purchases that we might have made in the last few years as those rates were beginning to climb back up. Well, that is no different for corporations, save for one caveat. Those mortgages that we initiated/refinanced back between the years of 2009-2016 were issued at all-time lows. We got locked in—and it was pretty great! Corporate debt instruments, however, almost always mature in five years or less. That means that the vast majority of commercial mortgages, corporate paper, etc. were no longer at those incredibly low interest rates—but new loans are again. All we can hope is that the reliance on cheap money doesn’t become an addiction, but for now, this will surely lower the operating costs of our largest institutions just like it does for our personal recent acquisitions. This bodes well for our economic outlook not only domestically, but it especially piques our interest abroad, as we will discuss later.
Second, let’s talk about the fact that 2020 is a major election year. There’s no “ifs ands or buts” about it: the volatility that we are currently experiencing might become more muted in the coming months, but it surely won’t be going anywhere too quickly. We expect a reelection of our current President, but contenders will almost certainly utilize this current crisis as a viable platform to espouse dramatic policy-making changes. Hindsight is always 20/20, but it is objectively fair to state that no mainstream media outlet, politician, or bureaucrat suggested that we implement mandatory quarantines, place large orders for facemasks and ventilators, or even suggest retooling manufacturing lines any time before March. Yet, it seems to be a recurring suggestion that someone, somewhere, should have known that this was coming and that they should have been overly prepared. That’s human nature, but it just isn’t founded in reason. Let’s face it though: increased regulation and the granting of executive powers simply increases profits for the largest companies, so we would still be positioned well for that trend, as discussed in prior Market Updates.
Third, how does the stimulus package affect our portfolios? As we saw last week, investors around the globe were very appreciative of the efforts to stimulate the economy. Individuals are expected to receive their rebate checks either by the end of this week or the following week. Those laid off will immediately reap the benefits of increases in unemployment pay so long as the stress from increased traffic on the unemployment websites is maintained. Also, people now have unpenalized access to their retirement accounts—but remember: they still have to pay income taxes on distributions. These are positives for the economy; however, penalty-free withdrawals certainly don’t increase share prices in the overall markets.
The largest companies will immediately reap the benefits because they have legal and tax teams already in place to maximize every dollar that’s available. They won’t have to pay any payroll taxes—at least right now. Those that have laid off portions of their workforce have no penalties for doing so and no longer have to contribute to their retirement accounts during this period. Those that retooled their manufacturing processes to accommodate face masks, ventilators, etc., were able to keep their employees and are now able to charge incredibly hefty prices for governmentally-demanded essential products. Those profit margins are not slim! This, coupled with the fact that those supplies will likely be shipped the world-over once our own pandemic stabilizes is most likely not going to negatively impact your portfolio.
However, small and medium-sized employers are going to have a rough month ahead of themselves. They employ roughly half of the U.S. workforce, so this is an immense group of people. They are the hardest hit during economic turmoil, especially when their government implements a mandatory quarantine of non-essential activities. They look to have little to no revenues and high continuing fixed costs relative to their size.
These employers have access to some great resources through mortgage forbearance programs through their banks, SBA loans that are forgivable should they use the funds for essential costs (Payment Protection Program), several other SBA loan types, and the simple fact that they are usually individuals with individual rebate cash coming. Those resources do not offer very much assistance until the cash actually hits the applicant’s bank account—that may take some time. The next thirty days will be extraordinarily difficult for the vast majority of small to medium-sized business owners. Therefore individuals and small businesses are in desperate need of cash and that cash must come from somewhere. The plethora of loan programs offered through their banks and the SBA, among others, take time to fill out. After all, nobody is going to help them complete a stack of governmental forms. Once submitted, there’s lengthy processing times, even if the forms are completely perfectly—which is rare when rules are continually changing and small businesses are involved.
Much of the small business assistance programs will take no less than 30 days and could take much longer before any cash actually hits the owners’ bank accounts. In the meantime, they may start taking money from their retirement accounts in order to pay for very important bills that they and their families need to survive. This, coupled with the temporary lack of employer-sponsored retirement contributions, there will be atypical, noneconomic downward pressures on an already incredibly volatile market. This could be a major headwind for portfolios in the short-term.
One relief that tenants and individuals are receiving are rent/mortgage forbearances. This is going to lead to a short-term cash crunch in the banking sector as well. Luckily for that industry, the Federal Reserve typically stands in support of its member banks. Those without the Fed’s support are in some trouble, but most banks that we know today are members of the Fed. We are still not exactly sure what cash flow issues this industry will have, as Fed injections of cash convolute much of the data, but one interesting phone call that we had with a loan officer should paint a rather vivid portrayal: the bank is not issuing any new mortgages for the next six months. Six months! This is a nationally recognizable bank—not some small regional one. We should err on the side of caution in assuming anything related to the banking industry at this time; however, it will be a major field of concern in the coming months.
Lastly, the COVID-19 pandemic, by almost all accounts, is not even close to reaching its peak in the U.S. As of April 1st, we are up to nearly 200,000 confirmed cases and just over 5,000 deaths. We are the third most populated country on the planet and these are only the confirmed cases. Optimistic reports estimate that between 100,000-200,000 people will die in this country. That puts us at roughly 2.50-5.00% of where we will be at the end of this pandemic…optimistically.
Now we are relatively certain that the best source for healthcare treatment in the world will likely have a much better outcome than nearly every population on the planet statistically speaking—but we are the third most populated nonetheless. The only two populations larger than our own are China and India which both have transparency issues so we head into uncharted territory. Either way, it’s obviously a major headwind for portfolios in the short-term.
The good news is that we don’t fly over to Italy to receive medical care. In fact, the wealthiest people around the world come here to experience the best that medical treatment has to offer. We also enacted quarantines much further in advance to Italy, with even Florida enacting one today (Italy is affectionately known by many as Europe’s Florida—you either go there on vacation or you go there to retire.) So, the prognosis looks relatively optimistic in our opinion: we should have a much better containment than our European counterparts. At the same time, we are only 2.5-5% through with this journey.
Addressing supply-chain concerns is an incredibly large headwind associated with the virus. The Chinese government exercises a great deal of control over its constituents and did so with an iron fist. The government was quick to impose mandatory quarantines of large provincial metro areas, construct new hospitals directly related to the care of COVID-19 victims, and most importantly for our clients, it was able to control the flow of information leaving the mainland regarding what industries and populations were affected, as well as to what degree. We simply won’t know the economic impact until later this year. What we do know is this: the typical backlog in which a full shipping container sat in port was approximately 50-60 days before the virus.
That addresses many of the supply-chains associated with goods. But what about services? Many call centers and other associated services were moved overseas to India over the last twenty years—not only from the U.S. but from countless other countries. The government in that country is not nearly as all-powerful as its northern neighbor. The Indian society was only recently able to move away from its age-old caste system with its embrace of capitalism but it still has much room for growth. Because of this, Indian society still has a great divide between “haves and have-nots”, despite its removal of many barriers to class mobility. The virus is expected to wreak havoc on the slums in and around its major metro areas. This is surely going to affect the workforce in a dramatic way.
Supply-chains of both goods and services will be visibly affected, likely through the rest of the year.
Our Short-Term & Long-Term Plan
Because of the thirty-day outlook for the cash positions of small businesses and individuals, the lack of large businesses retirement contributions (many businesses for that matter), banking system revenue shortages, the trade war between the Saudis and the Russians, major supply-chain issues with goods and services, and the simple fact that we are optimistically only 2.5-5% of the way through this pandemic, we are advocating moving 50% of equities from all client accounts into cash for roughly two to eight weeks. The downside pressures are far too great in relation to the upside pressures for this brief period of time. Should the pandemic take a greater toll than expected, then we will have been happy to remove half of our model portfolio’s risk after roughly a 20% decline from January 1st, 2020—usually close to a break-even from this time last year. Should our cutting-edge biotechnology and pharmaceutical firms develop, manufacture, and disseminate an effective treatment within the next thirty days or any of the other major headwinds be subsided, then the remainder of the portfolio will appreciate the fact that we stayed in over that time period.
The reason for a roughly thirty-day “quarantine” of 50% our model portfolios is one that is derived from a simple analysis of the most important financial statement—one that is frequently downplayed—and that is the statement of cashflows. Without a positive outlook for the statement of cashflows, there can be no viable income statement. Without an income statement, there can be no viable balance sheet. Without positive net cashflow, one must always sell assets in order to meet current financial obligations. If everyone is doing it, it will drop the marketability of those underlying assets.
At the end of the day, we estimate the chances of a positive month of April in the markets to be roughly 33%, meaning that the chances of a negative one should be roughly 67%. This is the first time we have held this view since 2008. Should that balance swing by this time next month, we will act accordingly.
Please be reminded: we are not advocating for a total removal of oneself from the equity markets. We feel that the long-term prospects are abundant, especially given what opportunity lie ahead of the U.S. companies that thrive amidst this dramatic uncertainty. We had over ten years of economic prosperity in the U.S. stock markets, but what we face now was not one created by lavish valuations, crooked ratings companies, “subprime” (i.e. bankrupt) mortgages, or any other man-made terror that we can see at this point. This was one that nobody foresaw because it was a natural one. It was one that manifested itself on the other side of the planet and journeyed across every nation amidst the ever-increasing global nature of how human beings interact and collaborate with one another.
This is also not the first time that our species has encountered such a threat. Approximately 35% of Europe perished in the Black Plague, yet the Renaissance that proceeded it was one of the most beautiful histories that we will ever read about. The Spanish Flu preceded the roaring 1920s. The plethora of pandemics that have stricken this planet will not halt mankind’s progress—in fact, just like all adversity, it simply makes us stronger than ever.
Investing is and always has been the act of forward-looking optimism. Without optimism, there would be no need to invest for one’s future. With it, billions of lives are continually improved each and every year. As population and overall demand for goods/services increases, more suppliers race to meet those demands. The global economy will become increasingly more interconnected as time goes on and we feel that U.S. companies are poised to reap the largest benefits from these increasing demands. After all, the profits derived from those enterprises are shipped back home to shareholders. Shareholders are legally entitled to a proportionate share of that business. So, while we and many of our clients are certainly not billionaires whom own large stakes in these companies, we are and will always be entitled to our own little share—thereby increasing our own quality of life moving forward. We think that the next two to five years should be incredibly profitable for these companies given the opportunities that we see ahead of this extremely troubling time. This means that our model portfolios will reap the benefits of 2020’s depressed prices and our own quality of life will be ensured in the long-term.
We just want to play it objectively for roughly the next thirty days and quarantine half of our own investments—so, naturally, we advocate for you to do the same.
So, let’s summarize:
approximately 50% of portfolios to cash/money market securities for at least two
weeks. We look forward to a promising one to five-year outlook after this
craziness has subsided.
- Interest rates: good, so long as addiction doesn’t set in.
- Election year: volatile.
package: good, but there are many reservations regarding timing issues.
- Large companies: good, especially once their workforces return and they are able to prosper in a tumultuous overseas environment.
- Small-Medium companies: good, if they receive the cash in a timely fashion.
- Individuals: rebate checks are okay; unemployment is good if they receive the cash in a timely fashion.
- Banks, landlords, misc. lending institutions: bad in the short-term; reliant on Federal Reserve’s hefty bail-outs.
bad, but there’s light at the end of the tunnel.
- Supply-chain issues with goods/services: terrible.
- Continue to keep a primarily large-cap-dominated allocation in our model portfolios with a focus on technology and other industries which stand to weather the current economic storm.
- Continue to watch geopolitical tensions and their inevitable outcomes.
Should this brief synopsis of our opinions—and these are purely opinions based on our own analysis of the data—stir any questions about the markets, about our service, or anything else for that matter, please feel free to reach out to us. It takes a great deal of trust to allow someone to manage your life’s savings. The fiduciary duty that we voluntarily assume because of our relationship is nothing compared to the ethical duty that we have to you and your family. It’s not something that we take lightly; so, until the next time we speak, we will be in the boat with you.
As always, we sincerely thank you for your continued trust and now more than ever, we pray that you and your loved ones remain safe amidst this extraordinarily unfortunate time.
Kevin S. Whiteford
Kevin S. Whiteford
Whiteford Wealth Management, Inc.
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research, Inc., a Registered Investment Advisor. Whiteford Wealth Management, Inc. and Cambridge are not affiliated.
This letter is not meant to solicit the purchasing of any equities, bonds, mutual funds, or any investment of any kind. Any direct mention of any investment is meant purely as a reference point in the analysis of the issues discussed in this letter.
These are the opinions of Kevin S. Whiteford and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is not a guarantee of future results. Diversification and asset allocation strategies do not assure profit or protect against loss.