Newsletter Q2 2020

We feel confident about the repositioning we were able to do during the pandemic and ensuing market volatility. While we are not aggressive buyers of stocks at current levels, we will likely add to high quality equities on any meaningful weakness. However, the bond market, particularly government bonds, is worrisome, with interest rates at record lows and over $15 trillion in international bonds trading at negative interest rates. Low interest rates are a negative for savers, and at these levels, Treasury bond yields cannot keep up with current and future inflation levels.