So it seems clear now that the COVID-19 (Corona Virus) has infected global financial markets. The bad news is that everyone in the world that has assets invested or has any connection to the global economy will be exposed. The good news is that most financial institutions and investors were prudent enough to have their financial interests vaccinated. At Ark, we were expecting this, we been through it before, and we are prepared for it.
While we did not know what would trigger the next bout of market volatility, we knew something would. It always does. In my career I’ve seen the big storms blow through like the Dot Com crash, 9-11, and the Global Financial Crises. We’ve seen some brief flurries like SARS, Brexit, and the Greek Debt Crises. Today it is COVID-19. While I am not able to predict the severity of the COVID-19 financial storm (no one is), I can say with absolute confidence that Ark is positioned to weather this storm, even if it gets worse.
As I write this today, some large US stocks are down over 6% in a couple of hours of trading. Diversified stock funds like the ones we own are down a more modest 1.7%, but our comprehensive multi-asset public portfolio is down about .5%. That’s because we were prepared. We don’t just own a few US Stocks. We own hundreds of stocks across multiple industries and countries, some of which are rising in this environment. We own several other asset classes that are thriving this week like government bonds, corporate bonds, and gold. Some of our equity positions are hedged against market volatility and will act as a buffer if the volatility continues. Most of you own assets that are not listed on public markets that are unaffected, like cash, insurance policies, real estate, and other private holdings. Financially speaking, you are vaccinated.
Nature unleashes storms and viruses that bring frightening moments and destruction. But for those who prepared, they will emerge after the storm to find renewed opportunity and even gain strength. We were prepared, after all its in our name–we built the Ark before the rain started. With that said, please reach out if you have specific concerns.