Mattson Financial Services - July 2020

F I N A N C I A L S E R V I C E S , L L C


July 2020


T here’s an old fable about a donkey that fell into a well. All the townspeople got together to figure out how to save the donkey. But try as they may, they couldn’t figure out a solution. So, the townspeople decided to do the best thing they could think of: Put the donkey out of its misery. The townspeople began dumping soil down the well to bury the creature. As they started tossing soil down the well, it landed on the donkey, which simply brayed and shook off the dirt. With every new shovel full of soil, it did the same thing. This went on for some time until finally the donkey stepped out of the well and was rescued. The reason I bring this up is that lately, many investments have seemingly fallen into that proverbial well. But as some people stand there and let the soil encompass them, we’re taking an active approach. We’re looking at where the market is and making decisions whether to buy, hold, or sell. We’ve put some great tools in place to protect your assets, including WealthGuard, which can help protect against certain losses and warn of potential losses. But sometimes we look past WealthGuard, especially when the market is full of buying opportunities, as it was in the recent downturn. We noticed several buying opportunities in real estate and precious metals. These are two markets that often recover quickly after a downturn. We’re not going to stand there and let the soil bury us alive. Sometimes we also build portfolios outside of a normal market position. For the most part, we use exchange-traded funds (ETFs), but we’ve veered away from these due to other market opportunities. For instance, our investing team recently created a contrarian fund. This is made up of stock that lost a major portion of its value. We invest with the anticipation that these companies are going to turn around in a short period of time. Now, we’re not saying you should get into a contrarian fund. If a contrarian fund is right for you and your portfolio stance, then it might make sense — and if we feel it is right for you, we will reach out to you to have that discussion. By the time you read this, the second market reaction to the COVID-19 crisis will have already likely started. This reaction is in response to updated second-quarter numbers, which give us a better picture of economic losses and unemployment. We anticipate that this second

downturn will be short-lived, and we’ll quickly be on our way to normalization.

Let’s be factual here: You can’t shut down an entire economy for 90 days and put people out of work without some financial ramifications. We’re really going to start seeing those ramifications this summer. But, again, it won’t be long until we’re in the recovery period. As President Trump said, the economy will recover, and we’ll be back to being a major economic force in the near future. Now, I know there are people who can’t stand President Trump. Then there are those who think he’s the best president we’ve had in the last 25 years. I’ll let you decide this for yourself. However, I’m going to agree with my wife, Nancy, and state that I didn’t vote for President Trump because I liked him. I voted for him so we would have someone in the White House who understands the economy and business economics and looks out for the American worker. I’m not taking a political stance. I’m looking at the numbers and what is taking place. We were in the middle of a historically great economy. Then, the virus derailed that economy. As we recover, the demand for a return to that great economy is in full swing. People are excited to get back to work. Like the donkey at the bottom of the well, when you’re covered in all that negativity, simply shake it off and pack it under your feet. Know that your accounts are going to go up as the economy recovers. With that said, I hope you join me in raising the flag this Fourth of July as we enjoy family, fireworks, and a financial future that is nothing but positive!

–Gary Mattson

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