“Social solidarity is more tenacious. It’s an active commitment to the common good — the kind of thing needed in times like now.” David Brooks New York Times March 19, 2020
Please know our entire team is thinking of your health and well-being, as we all navigate this historic moment together.
In the face of this daunting time, the only way we can fail is if we waver on our convictions and our investment beliefs. Capstone and the team at Capstone are at our very best when we are the underdogs. We are at our very best when we are aligned and committed to the common good.
We remember standing together at the market bottom in 2009 in horror at what had transpired and knowing there was a brighter future ahead. We could not have predicted the market strength that would follow or the long bull market that has transpired, and yet we had faith that things would get better.
We realize it may get worse before it gets better—but the one thing we know for sure, it will get better. The resilience of humanity and individuals is undeniable. Each one of us possesses the ability to change and get better. One day, in the not so distant future, we will all sit in our offices working side-by-side again. We will go to restaurants, movies, concerts, and sporting events. Our children will go back to school. We will have one heck of a party.
Patience is a Virtue for Investors
We hate seeing losses and a red arrow on Sunday mornings, recapping the last week’s change in investment value. We take solace in knowing that we built the portfolios to withstand the “unknown unknowns” that typically cause the stock market to decline.
We know this sudden bear market is jarring and rattling. While we are not without emotion for the gravity of this crisis, we want to assure you that we are measured and deliberate when it comes to managing your money. This is when we rely on diversification, investing in value opportunities and execute as we move forward. As an organization, we have been through two of these prior significant declines. To take advantage of opportunities, we must have courage and conviction. Most of all, patience is everything. Today’s decisions will drive years of future returns. Amid the extreme market declines, we are sifting through the wreckage with a laser focus on quality and earnings strength for new ideas that can withstand the harsh marketplace that could still lie ahead.
The Home Office
Our business continuity plan is in effect. We have tested this annually, and it is well tested now. Our investment in technology and functionality is paying off handsomely to work remotely at our home offices. To that point, we want to assure you our staff is equipped to work from home. We are standing by and check the office for mail and account deposits.
Calls are being re-routed, portfolios are being traded, stock review and investment committee meetings are taking place.
The New Unknown
We will be the first to admit, 11 years after the worst financial crisis of our generation, we did not expect to see a total economic and stock market shut down occur to protect our health. Here we are. While it may seem like the world is falling apart, we are writing to assure you that Capstone and your accounts are not. Over our 20-year history, we have lived through the six-day market shutdown during 9/11; then out of left field intra-day Flash Crash in 2010; the 19 months long Global Financial Crisis and now this. While a worldwide pandemic may be in a category all its own, we believe everything we have experienced up to this moment has helped prepare us for this new unknown.
Your health and the health of the worldwide community is what comes first. It is times like these that remind us that there is a strong bond between all humans. We will come out of this better with a focus on social solidarity and an active commitment to the common good.