Video Transcript:

Hello everyone. I just wanted to get a video out to all of you. I hope that you are enjoying this summer, it’s been a hot one, and I know with being locked down we haven’t gotten to do the things we’re used to doing in the summertime, but I hope you’re making the best of it. I hope you’re healthy and well.

I just to update you on what’s going on with our portfolios. As many of you may have noticed, I’ve been raising cash the last couple weeks to a higher level than we’ve been at in a while. And the reason we’re doing that is because we are using some modeling in our portfolios, we’ve been using a liquidity model to really look at what the Federal Reserve is doing as far as injecting liquidity into the markets, or pulling out liquidity into the markets. We’re also looking at seasonality of the markets and in what is historically good or bad times in the markets to have another layer of what we’re looking at with how we’re positioning our portfolios… the amount of cash that we may have in the portfolios… and again on top of what we’ve always used and leaned on heavily… charts. We’ve added these couple other layers to help us to kind of get a little better clarity to the direction that the markets seem to be leaning towards.

On the liquidity front we’ve seen the Federal Reserve basically take their balance sheet from January at about $4.1 trillion of liquidity they had in the markets, at that time before COVID-19 struck. So then, by June of this year their balance sheet had grown to roughly about $7.165 trillion. But in the last month we have seen a reduction in their balance sheet so they they’ve pulled quite a few billion dollars out of the balance sheet. So the liquidity in the market right now is at about $6.957 trillion. Still, a large injection into the system of liquidity.

What has driven the markets to to where they are now is no doubt been that liquidity that was injected into the system. But again, because we have no fundamentals really to base the markets off there’s still many issues in the market… we see that unemployment is still bad… we see industries like restaurants cruise ships, airlines, just totally crushed still to this day and really not looking like that’s going to get much better anytime soon. So we have large issues still in the economy that again, the market shouldn’t be as high as they are right now, with the exception of a few of the companies that are benefiting from this COVID-19.

So again, we’re just going to continue to look at our models… look at our charts and decide in which direction we want to go with the markets. But, for now, we’re raising cash because there has been some liquidity pulled out in the system… not sure how much more or how fast the Federal Reserve is going to dry some of that liquidity up. And then, from a seasonality standpoint August can be a very risky month for equities traditionally speaking. Could it be different this month? …maybe. We don’t know because of the amount of liquidity that has been put into the system. But again, we’re in the markets but we’re certainly a lot lighter than we’ve been in the last two months… we may lighten up even more. But just wanted to give you a heads up if you were wondering why.

Also we wanted to let you know we appreciate you being our clients. We’re working harder than ever as far as for managing your dollars, your assets in the market. From January 18 to yesterday we’ve done about 150 trades in your portfolios. So we’ve been working very hard looking for opportunities. We probably had another 30 different investments that we had research, looked at, and were going to potentially put into your portfolio. But, either timing, some type of news flow, or some other type of breakdown caused us not to execute those trades. So, just to keep you in the loop we’re going to continue to work as hard as we can to grow your assets, protect your assets, in manage through what is going to be, as I’ve said before, this is going to be this is a war. We just want to win more battles than we lose.

If you have any questions please feel free to reach out to me. Stay healthy, and again want to thank you for being part of the Aequitas Equitas Investment Group. we truly do appreciate you very much. And again if you need us, give us a call. We’re here. Have a great day. Have a great weekend. Take care. Bye bye.