Week One, 2021

Here we are at the end of a week which will likely be talked about for generations.  The headlines of the past few days will make it into the history books (mostly electronic of course) and be studied by students and analyzed by scholars long after we’re gone.  We are indeed living in interesting times.  And yet with all of the turmoil of runoff elections that ultimately decided which party gets a majority in the Senate for the next two years and insurgents storming the U.S. Capitol, capital markets operated smoothly. 

Market participants live through history, allocating assets according to their outlook.  Some of them are eternally optimistic while others remain perennial pessimists, with most somewhere in between.  Like the divide in our nation now, markets operate on differences of opinion and circumstances.  Earlier this week the electoral process was interfered with, and at times (like the financial crisis over a decade ago) financial markets get interrupted.  Fortunately, such disruptions don’t happen frequently, but they occur often enough that, while shocking, shouldn’t come as a surprise. 

Atlas fielded a few calls Wednesday about concerns regarding how this week’s events might impact investment markets.  Concerns are understandable, but there isn’t a crystal ball.  Instead of cursing the winds, Atlas can adjust the sails as conditions require.  In short, the managed portfolios we oversee are guided by a deliberate set of rules.  These instructions are designed to manage risk while remaining conscientious of the market’s tendency to move higher over the long run.  Last year’s market volatility in the first and second quarters was one for the annals, and this year is too young to know if it will stand out.  However it unfolds, Atlas’ rules have served us well in a variety of environments and should continue to do so in the future.