Dear Clients,
The market selloff we are experiencing will pass.
Periods like this are often driven by a convergence of short-term factors rather than a deterioration in underlying fundamentals. In this case, recent pressure has been influenced by developments in the Japanese bond market, the President’s announcement regarding his Federal Reserve Chair nominee, and heightened volatility in precious metals. While these issues have contributed to near-term uncertainty, they do not alter the broader economic backdrop.
Importantly, inflation, growth, and productivity data continue to come in stronger than expected. These fundamentals remain supportive of long-term equity values.
It is also worth recalling that just last year the market endured a roughly 20% bear market beginning in February, only to recover meaningfully and finish the year on a much stronger footing. While past performance does not predict future results, history reminds us that sharp corrections, while uncomfortable, are a normal feature of investing and often create opportunity.
At present, we see no structural issues that would suggest the likelihood of a prolonged bear market. That said, prudence matters. We have reduced equity exposure in portfolios—even though we continue to like many of the individual companies we own—in order to manage risk and preserve flexibility.
As prices come down, we are beginning to see unique opportunities emerge. Maintaining liquidity allows us to be patient, selective, and prepared to deploy capital when risk-reward dynamics become especially attractive.
As always, our focus remains on protecting capital, navigating volatility thoughtfully, and positioning portfolios for long-term success. We appreciate your continued trust and confidence.
Sincerely,
Kessler Investment Group, LLC
All information in this presentation is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. Certain statements contained within are forward looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Please consult your adviser for further information.
Opinions shared in this presentation are not intended to provide specific advice and should not be construed as recommendations for any individual. Please remember that investment decisions should be based on an individual’s goals, time horizon, and tolerance for risk.