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MC Stories – A 22-Year Love Affair with Alternatives

I met Lon Morton, the eponymous founder of Morton Capital Management, in 1984 when our family business was looking for a pension administration company. My father and I then started investing with Morton Capital in 1987, just three weeks before something called Black Monday, when the markets dropped about 50%. I remember calling Lon and asking, “What do we do now?” He said, “We do nothing.  Unfortunately, these things can happen, no one is able to predict it, but we are going to stay the course as markets tend to work themselves out.” With hindsight being 20-20, it was good advice as the markets did work themselves out and we had solid returns for the next few years.

I sold my company in 1996 and left in 1998, telling Lon that I was intended to retire at the ripe old age of 40. He firmly told me that I was NOT going to retire and that I was going to work with him at Morton Capital. We had worked together investing for many years, and he wanted to tap my experience in managing a company. Little did I know how wonderful a relationship and lifetime adventure it would turn out to be.

As luck would have it, I started investing my final company sale payout in the second half of 1998 and was met by a significant downturn in stocks. Disappointed, I came home to my wife and said, “I will never let the stock market be the sole dictator of our financial future.”  Thus, my love affair with alternative investments began.

With some effort, we survived the three years of the Y2K market crash and lived through the great financial crisis of 2008. Now we are faced with probably the biggest health and financial crisis in our lifetime: pandemic. With most of the world shut down, it will take all our combined resolve to overcome and beat the virus and get back to our normal lives. Having lived through a number of these disruptions in the markets, I firmly believe that our resolve and perseverance on the health side, and our asset allocation decisions on the financial side, will win the day!

Much of this is made possible by the incredibly hard work and dedication of the entire Morton Capital team. Being the senior partner, it is gratifying to see all our younger teammates working so hard and sensing the responsibility of service to our clients and making sure that they are okay. I have been fortunate to work with many good teams in the past, but there is no doubt that the current team at Morton Capital is outstanding. It makes me proud to be part of that diligence and compassion. I am even prouder of Morton Capital’s recent Give Back initiative: a community outreach to offer free consultations, advice, and guidance to help our community in this time of need. If you know of a friend or loved one in need of some direction, please see our Facebook or LinkedIn page for more information or just click here: Community Give Back Video

Before 2020, and after 22 years at Morton Capital, I figured I had mostly seen it all in the financial markets.  Leave it to a pandemic to prove me wrong!  But, the one thing that remains constant for me is my love affair with alternative investments and how they help round out my investments and exposure to a world where there are never any guarantees what will be coming next.

MC Stories – The Value of Diversifying, as Learned on a Farm

You may have heard about diversifying later in life when you started to manage your investments. I learned the value of diversifying much earlier, on the farm.

I grew up on a family-run farm in Iowa where we worked hard and played hard, together as a team.

On the farm, I learned that there is a natural cycle to things, and you can’t fight Mother Nature. If it’s winter and there’s a snowstorm raging around outside — that is a very good time to stay sheltered inside where you can be snug and warm and maybe enjoy popcorn and games with the family. It’s a very bad time to try to plant crops or expect anything to grow. But during those stormy winter days when our crops could not produce, my family figured out another means to survive. We took care of our milk-producing livestock and our hens who laid eggs – both of which gave us a nice source of income through the winter months. Then, no matter how long and cold the winter might seem, and no matter how dead those barren trees looked outside we knew we would be provided for until the harvest came. And as long as those trees had good roots, there would be a new cycle of growth.

When you apply these lessons to investing, you realize that it’s important to have diversified assets with some investments providing steady income and others providing longer-term, larger growth. And, all assets have a natural cycle. So, like Mother Nature, you can’t fight the cycles but you can be grateful for the growth cycle and patient during the “winter” as you wait for that next cycle of renewal.

Staying Connected During COVID-19 – Webinar #2

In the second webinar of the Staying Connected series, our Wealth Advisor, Executive Vice President and CCO, Eric Selter, and Wealth Advisor, Celia Meagher addressed the following client questions surrounding the latest developments of COVID-19 and its impact on the market:

  • What does the stimulus package mean for my portfolio?
  • What are some tips on handling my financial emotions during this unsettling time?
  • What is Morton Capital doing behind the scenes?

To register for access to these online events and/or submit any questions you would like our Wealth Advisors to answer for you please email us at questions@mortoncapital.com

https://vimeo.com/403014629

We look forward to you joining us on future webinars!

Staying Connected During COVID-19 – Webinar #1

Led by our Chief Investment Officer, Meghan Pinchuk, and Wealth Advisor, Kevin Rex, our first webinar on Tuesday, March 24 discussed the latest developments of the novel coronavirus (COVID-19) and its impact on the market. Below are the client questions we addressed:

  • What do all these government policy moves mean for my portfolio and the markets?
  • Should I be looking to buy or sell with everything going on?
  • How will our alternative investments be impacted?

To register for access to these online events and/or submit any questions you would like our Wealth Advisors to answer for you please email us at questions@mortoncapital.com


https://vimeo.com/400419802/9407412948

We look forward to you joining us on future webinars!