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May saw several states and foreign countries ease restrictions put in place in response to the COVID-19 pandemic. As economies slowly picked up momentum, investors grew more confident in stocks, driving values higher. However, investor optimism was kept in check by sobering economic reports and growing tensions between the United States and China.

The unemployment rate reached its highest level since the Great Depression while claims for unemployment insurance soared past 25 million. Economic output lagged in April as expected. Hardest hit were automakers, restaurants, and airlines. The month closed with a speech from President Trump condemning China over the pandemic, Hong Kong, and several other “broken promises.”

did you know?


  • The top 5 individual holdings (all technology) reached a new record level in April 2020 at approximately 21% of the total S&P 500 Index.
  • The top 10% of the stocks within the S&P 500 represent 50% of the total allocation of the index.
  • The smallest 10% represent only about 1% of the allocation; and
  • The smallest 250 stocks (half of the total 500) in the market-cap-weighted S&P 500 Index represent only 12% of the total asset allocation of the index.

Sources: Bloomberg LP, Bank of America, & Horsesmouth “Equal Weighting: The Powerful Impact of a Simple Strategy” September 19, 2019.

bright ideas
What Goes Down, Must Come Up
An Economic Breakdown of Covid-19

As we slowly peek our heads out our front doors for signs of normality, we reenter a changed world full of uncertainty. By now, your clients have looked to you for guidance, reassurance and leadership in navigating the economic instability of Covid-19. As you speak with your clients, keep in mind Beacon is here as a resource for you as we are all finding our way in the new normal.

In our recent Advisor Symposium, Josh Hirt, CFA, economist in the investment strategy group at Vanguard, gave an overview of the markets and the economy and the direction both are heading in post-Coronavirus. While second-quarter numbers will be dire, a slow, but steady recovery reaching into 2021 and 2022 is expected, with growth contingent on confidence in health care and containment measures.

As far as individual sectors are concerned, commercial real estate and air travel are expected to be the hardest hit. Because of a work-at-home shift, commercial real estate is also anticipated to be slow to recover. Because of fears of traveling, the airline industry and accommodations may not realistically recover until 2021. It’s important to remind your clients of Beacon’s equally-weighted sector diversification, which can help mitigate severe losses in any particular sector.

Pivoting to fixed income strategies, the Fed has signaled that rates will stay at its historic lows into 2022. The Fed’s response has certainly helped as a tailwind for the market. Fixed income yields will be subdued for the foreseeable future, but fixed income can still provide stability and diversification when used in a holistic portfolio strategy, something to stress with your clients.

The market has historically been forward-looking, and Hirt shared expectations of the economy catching up to the market’s swift recovery by the third or fourth quarter.

 So, what about your clients?

It’s important to share these market thoughts with your clients, but also to reiterate Beacon’s fundamental, research and data-driven philosophy: Our stop-loss strategy is designed to provide downside protection in historic and unsteady markets just like this. Chris Cook and Dan Baccarini laid out some conversation starters for you to help ease clients’ minds:

Debunking myths

The S&P 500 is one of the major indices that clients look to as a bellwether of what’s happening in the markets, but as you may well know, the S&P is not as indicative of the market as clients might think. More than 20% of the S&P is comprised of 5 of the largest tech stocks. Would your clients still look to the S&P 500 if they knew that? Especially for clients at and near retirement, an index like the S&P 500 is not an accurate benchmark for the performance of their portfolio. It’s up to you to moderate your clients’ expectations with conversations about your process, as well as debunking some incorrect assumptions.

Know your client & yourself

Be proactive and get in front of any questions and concerns your clients may have. Know what your clients are thinking before they even do. Does your client need liquidity to help their children or grandchildren weather Covid-19? How does a 10, 20 or 30% positive or negative turn in the market affect them? Do they understand the methodology behind your strategy? It’s important to understand and be understood. An educated client is an active participant in their strategy, and the more you understand your client’s needs, the easier it will be to find your way in the new normal.

For more information about Beacon portfolios or the many educational resources we have available for you and your clients, contact your wholesaler today!

beacon news

Miss Beacon’s Advisor Symposium? Access all of the resources now:

Day 1 VIDEO*


  • Top Advisor Panel
  • Positioning Beacon Portfolios with Chris Cook, President, and Dan Baccarini, Managing Director

Day 2 VIDEO*


  • Behavioral Coaching by Vanguard
  • Vanguard present an Economic Update and Market Forecast
  • The Cannon Launch – 2020 Action Items

Note the above presentations were created for our advisors with the goal of helping to provide additional resources, tools and talking points that can be used to help navigate clients through this unprecedented time. As such, these presentations are for advisor use only and should not be shared with clients.

Items from the Symposium that were discussed:

Beacon Capital Management Named to Financial Times’ Inaugural List of the Americas’ Fastest Growing Companies

Be sure to visit Beacon’s News & Press page and the Advisor Toolbox for the latest credibility pieces to share with your clients and prospects, and follow Beacon on LinkedIn for the latest updates as they happen.


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For Advisor Use Only, Not to Be Used With Clients

The GIPS Compliant Presentations for our Vantage portfolios can be obtained by clicking on the link below.  If you would like the Compliant Presentations to be emailed directly via PDF file or if you would like to receive a copy of Beacon’s Composite Descriptions; please respond to this email or contact Beacon at 937-439-9093.

BCM 2018 Compliant Presentations

Beacon Capital Management, Inc. is a registered investment adviser with the Securities and Exchange Commission. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.

Additional information about Beacon Capital Management is also available on the SEC’s website at under CRD number 120641. Beacon Capital Management only transacts business in states where it is properly registered, notice filed, or excluded or exempted from registration or notice filing requirements.

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Beacon Capital Management

7777 Washington Village Drive, Suite 280, Dayton, OH 45459

P: 866.439.9093 | F: 937.424.4825