Happy Father’s Day & 2 POVs
By Julien B. Booth
June 20, 2022
Good Morning and Happy Father’s Day 2022!
The photo above represents 2 points of view.
Picture 1 was taken March 19th of 2020. It represents pure, Covid-induced hysteria and panic. Fast forward to today, and if you are viewing financial media you would think the world is ending, yet again.
The past several years have been incredibly difficult for investors who believe in fundamentals (i.e. sales, real earnings etc.). Federal Reserve policy and stimulus monies broadly fueled an HISTORICAL speculative excess.
There will be no shortage of poster children from this era, but Crypto currency will likely be the most remembered (think 2000 Internet Bubble 10x). The Crypto world is down 70% or roughly $2 TRILLION in value. Many frauds will be uncovered in the coming period. There are also many companies with little tangible value and REAL prospects for operating profits. Most of these companies are experiencing a similar fate to Crypto.
We are in a dramatically different time today – where value is returning to its rightful place.
Picture 2 was taken yesterday and represents Time & Durability. Nora Booth was born shortly before founding Forest Capital (predecessor to BRC Wealth Management). Nora is now 18.
We believe in the durability of value. Securities with fundamentals and enduring value experience periods of market stress. We are in a period of market stress, but it is part of the natural market cycle.
As humans, we are predisposed to avoid unpleasant experiences. Ironically, investors should embrace these periods when it feels painful.
Buying quality businesses/tangible assets etc. is rewarded in Time, buying them on sale should be the whole idea.
I am grateful we work for VALUE people. Have a great day
Julien B. Booth
Chief Investment Officer – Fixed Income & Real Assets
BRC Wealth Management