May 8th

School Reunion Season is coming up. I have been to a few of mine, and this attachment seems apt. It is more attuned to the “older crowd,” and especially Patsy Cline fans. I hope you enjoy.

California’s economy is opening up. We hope that turns out to be a good thing, but about that, as well as about so much, we are uncertain. This I know – observing protocols of distance, masks and hand-washing is the right thing to do. Please stay safe.

Speaking of uncertainty, in the last few weeks we at DHR have been quite interested to see that some highly placed, highly informed and very intelligent people, all knowledgeable about economics – Buffet, Merton, Fama, French – when asked about what’s coming, have all  agreed on one statement: “I don’t know.” Uncertainty has risen higher than ever in my lifetime. For us in our business, from uncertainty comes volatility, confusion, anxiety. Decision-making is definitely challenged. In this environment, many people are having difficulty figuring out what to do about planning and portfolios. If you know someone in that position, please consider sending them our way, for a complementary conversation.

We have a couple of items of information that the SEC wants us to send your way. First, we have put  our current ADV in the portal. If you have trouble gaining access to or understanding it, please let us know. Second, DHR has just received our portion of the Federal Government “Stimulus Package,” $124,621. We applied for it in anticipation of potential revenue declines. In 2008, we experienced large reduction in AUM and therefore revenue declines and were forced to reduce payroll. We do not want to do that again, so this money will be used to help us avoid doing that.

Which leads me to the next, related and last point: Please consider your own situation. It is important enough to allow me to repeat our recommendation: Liquidity for the future – we recommend 15 – 18 months. That is #1. Then, align the portfolio with your longer term objectives. We are here to help, but please take this seriously. Be prepared for intense times.

Be well, everybody! Zoom notwithstanding (which we can do with you anytime) – we sure do miss seeing you!

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