October 2020

These Times Call for Planning, Patience

These are uncertain and exhausting times. We are trying to understand and respond to the health and economic effects of COVID-19, which has killed more than 1 million people worldwide and more than 215,000 Americans while leaving many businesses and employees scrambling to stay afloat. We are concerned about the heated election rhetoric fed by extreme partisanship and divisive politics. Many of us feel worn down and nervous, especially as we face a possible winter resurgence of the virus. Conventional wisdom tells us that the markets do not like uncertainty, and they have been bouncing all over in recent weeks and even months.

What should we do? First, let’s look at what we can do. We can take care of ourselves, protecting our health and the health of others. We can vote, which gives us a voice in the future political direction of our country. We can try to be kind and to look for opportunities to do what we are able to do in the lives of the people we are able to reach. And we can remind ourselves that this too shall pass.

The election uncertainty should be over soon – probably not on the night of Nov. 3, but soon. Whatever the results, we will have a better idea of the direction our country and our economy is likely to take. We won't know everything, of course, but the presidential candidates and their parties have widely differing visions. Whether your side wins or not, at least there will be a clearer idea of what to expect.

But the worry and the uncertainty will be around for a while. If you are concerned about your investment portfolio, it is important to remember that there are some things you can do during these times. It is important to have a strategy based on sound principles, and to implement and stick to that strategy. At Peachtree Investment Partners, we believe in strength. We start by buying the stock of companies that we believe have the best chance of success, especially large American companies that have strong leaders with the experience and foresight to recognize and adapt to whatever happens. We also look for companies with good return on investment and a long history of consistency in revenue and earnings growth. Finally, we believe in stocks that pay dividends. Over time, reinvested dividends can have a major impact on your portfolio growth. And dividend income means your return does not depend fully on an increase in stock price.

We are always available to talk with you about any concerns you have about your portfolio, so don’t hesitate to reach out. After all, we are all in this together. And meanwhile, stay safe and vote!

Garry K. Schaefer
Atlanta, Georgia
October 20, 2020

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