As you can see on the above chart, market recover quiet quickly from similar crisis. What we can't predict is the length of the current conflict and the uncertainty is one of the key factors causing the current volatility.
Another worthy comments are from one of our other key partners, Noah Blackstein, from Dynamic Funds. His current comments are as follows:
" famous stoic philosopher Marcus Aurelius wrote “Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present." Similarly, whether it was Long Term Capital, the 2000-2002 bear market, the Global Financial Crisis or even the 2020 Pandemic, staying disciplined and focused on our process for finding great growth stocks, regardless of the exogenous shock, has always been the weapon we’ve used to make it up, and out the bear market valley. That’s why the most important news this month was that despite stocks being under pressure, earnings have come in much better than expected for the companies we own, and their outlooks remain exceptional. This is critical to what we do.
The Covid-19 induced relative valuation gap has been closed by declines in prices and continued strong earnings. Not only are there are no shortages of new investment ideas, there are many old ideas that look even more attractive. One company I was circling back on trades at the same price it did in 2019. In 2019 they did $1 billion of revenues and next year they’ll do $5 billion of revenues. These are exciting times for stock pickers. - N"
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On another note, if you would like to help those suffering in Ukraine, we have found a link to contribute though Red Cross and already done so on all of our behalf, but if you wish to add to that, please follow this link.
If you have any questions, feel free to reach out to myself or a member of my team. As always, with love and gratitude,
Anna Knight, BA, CFP & Team Simplicity
