March 23, 2020
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US Equity Returns Following Sharp Downturns
First of all and of most importance is our hope that you and those closest to you are in good health. We have been doing our best to reach out to each and every one of you. Please know we are always just a phone call away if we can help in any way.
As you know from talking to us at Prato Capital, or through our ongoing newsletters and social media posts, we have an investment discipline and do not make short term forecasts that try to time the markets. We approach volatile times like these using all historical data as a guide while still incorporating all the current information. Yes, this is a unique period in history. Yes, it is unsettling to watch the news and the world around you. We are fully aware of this. However, having been through very unsure times before, we believe that sticking to a plan that uses history as a guide will lead us all out of this, as in past market disruptions. We remain confident in the long term processes of the markets….we just need to give this event the time to work its way through.
Attached is a document that shows how markets have reacted and what returns have occurred over the past 92 years after market declines. Yes, this is a unique global market disruption on the social and economic level. With that said, history has a funny way of evening things out over time … and then some.
Again, with the utmost of care in mind, stay safe, check on those most vulnerable and please call us anytime. No number of calls, no number of questions are too many. We remain here for you…always.
