A Word, or Two, About Communication During Unprecedented Volatility…

From July 1 through yesterday, October 7, the Dow Jones Industrial Average rose or fell more than 1% in 40 out of 67 market sessions, including 23 market declines, 13 of which were greater than 2%. As you might imagine, on each of those days, we engage in internal and external meetings, conference calls, and emails trying to assess the situation. We measure client exposure and search for actionable insight consistent with our fundamental long-term philosophy. Should we change asset allocations? Should we rebalance and harvest tax losses? Can we even successfully implement those techniques within guidelines when volatility is so high? Will our clients expect to hear from us today? Is another client communiqué appropriate or do we risk redundancy, cliché, seeming Pollyannaish?

In the days and weeks ahead we will continue to monitor markets and events closely; challenge our own long held policies and principles; and communicate with you whenever our best judgment suggests we should. Thus far, painful as this all is, we see nothing that leads us to fundamentally alter course. However, we have already begun a deeper assessment of the economic, market and political conditions that led to this crisis and plan to issue a whitepaper describing the conditions necessary and the likely timetable for the economic recovery that we know will come. This assessment coincides with our already scheduled project to reset the capital market expectations that drive our asset allocation recommendations. We look forward to sharing the results of our work with you soon.

As we strive for the right balance between too much communication or not enough, we strongly encourage your feedback and questions. Never hesitate to contact your client service team or Aspiriant leadership. Please know that exceeding your expectations is paramount in our minds especially during these challenging times.

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