2019 ended with all three major market endices marking all-time highs, a far cry from this time a year ago when the market was recovering from a near 20% sell-off. This “tale of two markets” reminds us why investing with a long-term view is a true competitive advantage in a world dominated by short-term thinking. Incredibly, the current bull market is nearing its 4,000thday in duration representing a long and steady recovery from the doldrums of the 2008-2009 credit crisis.
Clients of Greenwood Gearhart have participated in this recovery, capturing much of the upside provided by the domestic equity markets. Because our portfolios are global in nature, we’ve also profited from internationally-domiciled companies with a global focus. Capitalism has served us well.
It’s important to note, that – like in football – we emphasize both offense and defense in the stewardship of your capital. Your 2019 results largely reflect our strong offensive play, while certain defensive moves we made during the year serve to protect the downside in an inevitable pullback. We have higher than normal cash, introduced increased fixed income positions where portfolios require stability, and limited exposure to certain cyclical equities in an attempt to lock-in profits from the recession recovery. All of these measures are aligned with your unique goals and circumstances to help us “win the game.” Here’s to hoping our local favorite Arkansas Razorbacks pursue a similar approach under new coach Sam Pittman!
As we move into 2020, we are most appreciative of the trust and confidence you have placed in our firm. We know our responsibility to you is great and we awake every day with the resolve to provide the best wealth management service anywhere.
Wishing you and yours a prosperous, healthy, and happy new year!
Brock Gearhart, CFA
President and CEO