Lessons From the COVID Era - Introducing Operation Magnify

The Dividend Cafe

The Dividend Cafe - The Bahnsen Group

Macro Economics, Monetary Policy, Dividend Growth Investing, Retirement Planning, Wealth Management, Investing, Business, Estate Planning

4.9 • 572 Ratings

🗓️ 2 October 2020

⏱️ 22 minutes

🔗️ Recording | Apple Podcasts | RSS

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Summary

I wrote the majority of this week’s Dividend Cafe before the news had broken that President Trump and First Lady Melania had tested positive for COVID. We wish them a speedy recovery, of course, but don’t have much to say about “market implications” of such, other than the obvious – more uncertainty, more volatility. I will hold off on political and market implications for a few days, for obvious reasons.

There are lessons from the COVID era that will stick with us forever. Most of them, mind you, if not all, were not new lessons - they were reminders - reaffirmations of timeless lessons and principles. I am not sure the way we were reminded of some of these lessons felt familiar. Markets do not often drop 36% in 31 days. But these general principles all held true, in spades.

In this week's very important Dividend Cafe, I am going to write about some of those lessons (not all of them), and transition that into an opportunity to MAGNIFY what we believe at The Bahnsen Group, what we are doing now, and how we are using the COVID moment to optimize client portfolios for the years to come, all by just MAGNIFYING what we have always believed.

This Operation Magnify that we have been developing for months is both a proactive and reactive process. We want to take new realities to their logical conclusions and apply them into an investor's portfolio, and we want to create an entirely consistent process and infrastructure by which we assess and administer this on behalf of our clients.

If you are not a client of ours, it really doesn't matter. The moment you are living in is a moment of paradigmatic change for investors. Viruses and the risk of viruses have always existed. "Tail risk" events that shock and awe markets have certainly always existed (and always will). But there are fundamental realities that have changed - many of which were well under way pre-COVID, I assure you - and the discussion in Dividend Cafe today is useful even for those not under our care.

The same is true of your approach to investing, and that is where we are going in today's Dividend Cafe.

Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com

Transcript

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0:00.0	Welcome to the Dividing Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life.
0:13.1	Hello and welcome to this week's Dividend Cafe. This is David Bonson. I'm the managing partner here at the Bonson Group. And I'm excited about this
0:23.5	week's podcast. We have a very exciting project that has now come to fruition that we've been
0:30.5	working on for many months at the Bonson Group. And I think it's a culmination of a lot of work
0:37.4	through this COVID moment. And I think it's a culmination of a lot of work through this COVID moment.
0:39.8	And I want to kind of set a little context as to what is driven this, what we're calling Operation Magnify, what we think the COVID moment has meant and represented where it fits into all this and
0:55.5	and what other circumstances are that ought to drive some thinking about investors' portfolios
1:01.7	right now.
1:02.6	It's the kind of stuff we talk about every week in Dividend Cafe.
1:04.9	It may not seem like it's particularly different.
1:07.2	But I think that what we've done is really sort of crystallize a holistic set of questions to be
1:15.2	asking, of conclusions to draw, various kind of, you know, turning points in your portfolio
1:22.8	considerations. And a lot of it is out of the COVID moment and a lot of it may seem like it is
1:32.4	but it is somewhat unrelated. But I'm going to unpack all that. So let me jump in with a few
1:37.5	observations. Now, you may ask, why are we talking about COVID in the past tense? Because I'll be the first to say, COVID is not in the
1:46.2	past tense in the sense that there are still a significant amount of cases of coronavirus,
1:52.4	both domestically and internationally. There's going to be a lot more cases.
1:57.4	There's no reason to act as if COVID doesn't exist anymore. It does. And I'm very sad to say that there will be more people who die from it. You know, we have ways to go here. But what I'm referring to is in the fact that we stopped our COVID and Markets.com missive this week,
2:20.3	a daily communique around COVID and its impact on markets.
2:24.3	And we did that because I did believe and do believe that what needed to be said about it has been said
2:32.5	and that a daily regurgitation of redundant data
2:36.8	around hospital beds in this state and declining cases in that state and increasing
	...

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