Meeting You
Where You Are!®
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Your Account Information, Reports, and Stored Documents (including Billing Statements once processed for this quarter)
can be accessed by clicking on the following link:
Once the login screen comes up, enter your email and password as usual. You will see your Dashboard summary and can use the tabs to see more detailed views of your accounts.
Also note that all reporting and account information (including Billing Statements) will only be provided through the above portal. If you are not currently set up please contact me soonest to ensure you have proper access.
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Coronavirus Bursts 11 year Bull Market Bubble
... and how long will it take to come back?
The Coronavirus pandemic has affected not only our on-the-go culture, but very significantly the economy and markets. With federal, state, county and city requirements to socially distance and stay-at-home, all non essential businesses closed in March and remain closed for the remainder of April at least.
Below you will find Ryan Walsh's mABC Quarterly Commentary which does an excellent job of addressing the latest news about the pandemic as well as impacts on markets. In this edition he covers the following:
- A summary of the 1st Quarter 2020 in "Global Market Performance"
- A review of "Coronavirus: Where We've Been"
- A comparison to other Bear Markets in "A Most Testy Market"
- An outlook for the future in "Look Ahead"
In the rapidly moving markets over the last 2 months, I shifted to a capital preservation approach for managing your portfolios. As such I shifted a higher percentage of assets into cash while maintaining the agreed basic risk profiles for your accounts. As a result most of your accounts are down about -4% to -5% from the beginning of the year. The returns of our agreed investment strategies for 1st Quarter are shown below.
The the "S&P 500 on the other-hand end of the quarter closed down -20% after hitting a low of -34% on March 23rd. With the extraordinary monetary stimulus actions of the Fed and the "helicopter cash drop" fiscal stimulus by the Congress and Administration, markets rebounded quite quickly. Also below I show the returns of our agreed investment strategies as well as the return of the S&P 500 as of Monday of this week, April 13th.
| Agreed Investment Strategies |
1st Quarter 2020
Net Return |
YTD thru
April 13, 2020 |
| mABC Aggressive |
-5.1% |
-3.6% |
| mABC Moderately Aggressive |
-3.9% |
-1.6% |
| mABC Moderate |
-4.6% |
-2.5% |
| mABC Conservative |
-4.2% |
-2.4% |
| S&P 500 |
-19.6 |
-14.5% |
The table below shows the approximate percentages for your accounts in each asset class at the end of the quarter. Depending on the outlook for reopening the country and how companies large and small are faring, I will likely adjust the amount of cash up or down over the next few weeks.
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Agreed
Investment Strategy
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Fixed Income Investments |
Equity Investments |
Cash Investments |
Aggressive
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0% |
60% |
40% |
| Moderately Aggressive |
15% |
45% |
40% |
| Moderate |
25% |
35% |
40% |
| Conservative |
40% |
20% |
40% |
- Fixed Income Investments (PIMCO Income Fun PONAX) which typically serves as a counter balance to equity investments, suffered more volatility in March. Bond and fixed income markets "froze up" temporarily due to a shortage of liquidity. All account holding fixed income were affected.
- Equity investments are currently in the broad global index ACWI with Moderate and Conservative accounts invested in ACWV, itsLow Volatility equivalent
- Smaller accounts (less than $25,000) are invested in diversified funds AOA and AOM which hold a mixture of equity and fixed income funds. Cash in these accounts is sitting at about 25%
So what's the outlook?
While markets seem to have reentered a bull market in the last couple of weeks, I believe it will be short lived. Many were hoping for a quick bounce back of the economy with all the monetary and fiscal stimulus. We know that about 16 million people have lost their jobs and many more are working from home burdened by closed schools & day cares and the whole country is still living under stay at home restrictions. I expect at least one more major drop in the markets before we begin a slow, multi year recovery process.
While there is now a lot of talk of reopening the economy, that will be a slow process and likely we will not be in full operation until much later in the year, and that assumes another wave of Coronavirus doesn't hit.
As always, I will continue to monitor markets and make adjustments to your portfolios as conditions warrant. And I am happy to discuss our respective views in general and your account and investment needs specifically.
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Special Notice:
Late last year Congress passed the "
Secure
Act" that affects the timing of Required Minimum Distributions (RMDs) from your IRAs. Below is an article by Fidelity which outlines those changes. Please read if you have Inherited IRA or you have Traditional IRAs and are nearing retirement.
Further, with the Coronavirus fiscal stimulus CARES Act in March, additional changes were made to retirement account withdrawals. In particular, if you have not already taken your 2020 RMD, the CARES Act gives you the option to not make that withdrawal this year. The following article from The Street.com outlines changes to retirement fund withdrawals set in place by the CARES Act.
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A special thank you any of you or any of your friends or family who are on the front line of the medical response, who work in essential businesses like grocery and drug stores, who are first responders -- police, fire and national guard support -- and other working to help us survive this extraordinary time. Please continue to follow the social distancing and stay-at-home guidelines as they seem to be helping attenuate the growing spread of Covid19
As always I welcome feedback on this publication and am happy to try and address any topics you might find of interest.
All the best,
Michael Andries, CFP®
mABC Investment Advisors, LLC
+1.713.777.0260 Houston / Galveston Area
Annual Required Disclosures may be viewed on
www.mABCLLC.com
anytime or by clicking on the following Links:
Please review these disclosure was well as your investment company's quarterly statement (e.g. Fidelity, TD Ameritrade or your 401k provider) to confirm you account activity and balances at least quarterly.
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Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there are no assurances that any portfolio will match or outperform any particular benchmark. Investing in Emerging and Frontier International Markets involves special risks, such as currency exchange and price fluctuations, as well as political and economic risks. Commodities may be subject to greater volatility than investments in traditional securities and may be affected by overall market movements, changes in interest rates, other non economic factors such as weather, disease, and embargoes, as well as international economic and political developments. Past performance may not be indicative of future results. All investment strategies have the potential for profit or loss.
The information and opinions expressed herein are obtained from sources believed to be reliable and up-to-date; however, their accuracy and completeness cannot be guaranteed. Opinions expressed reflect judgment current as of publication and are subject to change. Information in this document is directed toward U.S. residents only. mABC Investment Advisors, LLC is registered as an investment adviser with the states of Texas and Louisiana and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.
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