…The Great Teaching Moment!

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Think of something you are truly good at. One of the reasons you are good at it is because your knowledge and experience enables you to override your emotions to make decisions. 2020 uniquely illustrates multiple moments that required a steady hand at the helm to navigate turbulence.

 
Even before Covid-19 became evident, behind the scenes, certain equity valuations were suspect,
giving pause to the value-sensitive investor. Ironically, overvaluations were then somewhat remedied
following the first utterance of the word “pandemic”. This was followed shortly thereafter by the
lockdown-created recession. And each of these events happened amidst societal unrest and, arguably,
the most polarized election in recent times. Even the seasoned investor heard the siren’s call of
temptation to reduce or eliminate stock market exposure. So what of those who surrendered to their
emotions?
 
If they moved to cash, they have not only earned next to nothing (salt on the wound!), they also
failed to participate as the stock market climbed a multi-faceted “wall of worry” back to near all-time
highs!