The latest market hissy fit and the scary coronavirus

Gerry Frigon, President and Chief Investment Officer at Taylor Frigon Capital Management comments on the latest market hissy fit.

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Q4 2019 hedge fund letters, conferences and more

 

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The Latest Market Hissy Fit

  • We’ve spoken about market hissy fits several times before. Right now we are going through another and the culprit is the scary coronavirus.
  • The situation has been turned into a near panic by the "crisis industry" and that has sent the markets around the world into a another "hissy fit".
  • We simply do not see this type of reaction every year to the significant number of people who die of influenza in the United States.
  • We recall past "pandemic fears" such as the Avian Flu, SARS, and the Ebola outbreak. Those diseases were deadly too, but ultimately ran their course and we believe the coronavirus will do the same.
  • We recently gave an update to clients and discussed that we expected there could be a 5-10% correction at any time given the recent strong performance in our portfolio strategies, and the market in general.  We wouldn't have expected it would all occur in one week, but here we are.

Take advantage of this correction

  • It is not our strategy to react to such market events in a frenzied manner.  
  • There certainly could be more on the downside, but we would urge investors with excess cash to take advantage of this correction and immediately deploy at least some into businesses with good prospects. These opportunities don't come around all the time. It is time to take advantage.
  • The coronavirus scare will pass and there will be some economic impact but we expect it will be light in the overall scheme of things. There are some very favorable trends happening relating to 5G in telecom, regenerative medicine in healthcare, the Internet of Things and automation in the factories, virtualization of network infrastructure, and many more.
  • Yes, what a difference a week makes, but it's just another hissy fit in the market.

About Gerry Frigon

GERARD J. FRIGON is the President, Chief Investment Officer of Taylor Frigon Capital Management LLC and is the Managing Member of Taylor Frigon Capital Advisors LLC, General Partner to Taylor Frigon Capital Partners LP, a private investment fund which invests in private companies and small emerging public companies.

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GERARD J. FRIGON is the President, Chief Investment Officer of Taylor Frigon Capital Management LLC and is the Managing Member of Taylor Frigon Capital Advisors LLC, General Partner to Taylor Frigon Capital Partners LP, a private investment fund which invests in private companies and small emerging public companies. He is the Senior Portfolio Manager for the Taylor Frigon Core Growth Fund, an open-end investment company (TFCGX). He serves on the Board of Directors for ASOCS, Ltd. (a pioneer in virtual Radio Access Networks (vRAN) and a provider of fully virtualized, NFV-compatible virtual Base Station (vBS) solutions, based in Rosh Hayan, Israel), and I-V Access Technology, Inc. (a private medical device company committed to bringing their breakthrough catheter, VENAGLIDE, to the market to transform the venous access experience for patients and clinicians, based in San Luis Obispo, CA.) Mr. Frigon has over three decades of experience in investment strategy, planning and portfolio management for private investors and institutions including over 21 years at Merrill Lynch in the San Francisco Bay Area. During that time, he has managed portfolios with the same disciplined process directly descended from the classic growth philosophy implemented by Thomas Rowe Price and Richard Taylor. Mr. Frigon received his Bachelor of Arts in Business/Economics from the University of California, Santa Barbara in 1985. He founded Taylor Frigon Capital Management LLC in 2006.