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Given the recent extension of social distancing guidelines, we wanted to provide an update on Eagle Ridge’s continued service of clients while doing its part to flatten the curve. Currently, the Eagle Ridge office remains open with Ben and Jesse on-site.  They will conduct trading operations and serve as a hub of communication.  All other employees are working remotely.  This arrangement will continue for the foreseeable future subject to further guidance from local officials. Regardless of physical location, each employee and Eagle Ridge as a firm continues to be fully…

The human capacity for burden is like bamboo - far more flexible than you'd ever believe at first glance. Jodi Picoult, My Sister's Keeper.Homo sapiens evolved from an ever-changing population of Hominids in Africa to populate every land mass on the earth’s surface and a manned space station with a full-time crew of six astronauts.  As a species, we have survived wars, famines and plagues and adapted to thrive again after the passage of the threat.    The Black Plague decimated millions in China before arriving on Europe’s shores where it killed 30% to 60% of Europe’s population in the mid 14th Century.  While the pace of change was…

So, first of all, let me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.                 Franklin D. Roosevelt (Inaugural address March 4, 1933 during the depth of the Great Depression)  The spreading coronavirus has led to a panic across our society.  Schools are closed, supermarkets overrun with shoppers and the financial markets have sold off.  Leadership has also been weak as countries have blamed each other rather than working in a coordinated fashion to understand…

When the coronavirus (Covid-19) first hit the news, the markets shrugged off the outbreak, assuming that China’s aggressive efforts to quarantine Wuhan would limit the spread.  This assumption fell apart rapidly over the past weekend as cases appeared in South Korea, Italy and Iran.  In keeping with other periods of stress, stocks have fallen sharply (7-8% in the last few sessions as of this writing) and quality bonds have rallied as investors seek safe alternatives for their assets.    None of us are contagious disease experts, but our reading suggests that this virus has spread to all 5 continents and that reports of new cases are likely to continue…

Rising Valuation Multiples The US stock market had an especially strong year, with the broad indices up roughly 30% on a total return basis. As discussed in previous commentaries, the rise in the market was more due to multiple expansion and less due to earnings growth. In fact, the S&P 500 started the year with a trailing twelvemonth price/earnings multiple of 16.5x and it rose to 21.6x by year-end. This 30% multiple expansion mirrors the 30% market appreciation almost exactly. In other words, there was a dramatic increase in what…