Dear Friends,

We hope this letter finds you and your family well. We first would like to acknowledge that it was a difficult season, and our hearts go out to anyone who has been impacted at some level (which is most likely everyone receiving this letter). However, we are thankful that despite all the turmoil, financial markets and corresponding portfolio returns performed better than might have been expected. For the year US markets were actually up nicely year on year, with large growth companies leading the way. Many of these benefited from both having the financial means to weather the storm and capitalize on the changing trends related to the pandemic. The great news is that the principles of disciplined investing including diversification and rebalancing added meaningful value in 2020, especially showing up in Q4 as small, value, and international stocks accelerated on increased signs and hopes for recovery.

As we enter 2021, we are optimistic for continued economic healing. However, there are some potential headwinds in the form of potential tax changes, continued Covid-19 cases surging across the globe causing continued economic slowdowns, and potential inflation from government sponsored economic stimulus packages. In addition, valuations in some market sectors are above historical averages and we continue to monitor those for appropriate allocation levels to the various asset classes.

Having said that, arid despite all the turmoil, we believe in the US and Global financial markets and in the ability of some of the greatest companies in the world (in which we are invested), to deliver value to their shareholders (all of us), and we look forward with measured optimism to 2021. By the way, below is a little poem to celebrate this transition, and if after reading it you decide we (specifically Mitch) should stick to finance we will understand!

Ode to 2021
2020 you arrived
Chaos in your hand
When fear rose up, we chose to stand
And by God’s grace and despite CNN
Flames being fanned
We emerged looking to heal
Onward with faith
Stronger, wiser, still!

2020 Tax Dates and Notes:
Just a reminder that generally you have until your tax filing date to make contributions to IRAs (if eligible) and SEPs / Solo 401Ks. If you are unsure about the timing or amounts, please let us know. We are thankful to work together for the benefit of your families and businesses!

Mitch and Destin