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Our Game Plan is Growth

In this week’s market update, we will focus on recent COVID-19 vaccine developments, what it means for the economy, its impact on asset prices over the short and long term, and most important, what it means for your money. Second, we will review the attributes we look for when identifying new investments and how to use these attributes to guide us through times of heightened market noise like we are experiencing today. Lastly, we will study the nature of the current market rally, how sustainable the recent moves upward appear, and whether the move upward in stock prices have been accompanied by an improvement in credit market health. 

As the prospects for an effective vaccine move closer to becoming a reality, it’s never been more important to maintain investment discipline and stay focused on companies that can deliver sustainable and healthy growth. While a vaccine can be effective at providing humans protection against a virus such as COVID-19, it will not provide investors any protection against companies that are poorly managed or suffering from long term decline. Stay focused on companies that can deliver sustainable market-beating growth regardless of the headline environment. 

The bottom line is that despite all the hoopla and excitement over a series of successful COVID-19 vaccine trials, we are not going to lose our investment discipline and buy poorly managed companies that have a history of destroying shareholder value. We remain focused on companies leading positive disruptive change that can deliver market-leading growth rates in a variety of economic environments.

Robert Reaburn, Executive Vice President and Head of Wealth Management at LifePro Asset Management