Our morning started just past dawn with the thermometer reading minus-15 Fahrenheit. It was a beautifully cold day with the sun bright in the low southern sky beginning its trajectory east to west. Silver confetti filled the air and sparkled in the morning light as all moisture in the atmosphere immediately froze creating unworldly beauty. The day’s ride was getting off to an unforgettable start.

Josh and my son-in-law Zach had joined me for an extended weekend of sledding in the Northwoods of Wisconsin and the Upper Peninsula of Michigan. In Northern Wisconsin, the years’ snow totals had been sparce and the trails opened a month after the usual mid-December opener. The Upper Peninsula, however had received near record snow most notably on the Keweenaw Peninsula with over 300 inches of snow for the season. Regardless of the snow totals, the temperatures had been near normal and without the snow cover insulating the Northern Wisconsin ground, the frost line ran unusually deep. The lakes and swamps were frozen solid. What snow that had fallen was expertly manicured by the groomers. Using rollers and rakes pulled by heavy farm equipment to create a “road” surface of snow capable of allowing our snow machines access across the frozen terrain.

The night prior we had agreed that the day’s ride would leave the house at sunup and ride east to Eagle River, Wisconsin and then north to Watersmeet, Michigan. A morning ride of 100 miles, plus or minus, and an afternoon return trip of equal length. We would ride to Watersmeet for lunch and return to the house at or about sundown. It was Thursday and leaving the house we rode beautifully manicured trails with few of the telltale tracks of other riders before us. The groomers had obviously been out all night to create this magic. The first 20 miles or so were smooth like glass as the snowmobiles carved the corners as if we were riding on rails. It seemed amazing that the groomers could use the little snow that had fallen and sculpt it into smooth roadways. Under the snow the frozen ground was uneven and pitted with ruts, holes, rocks and tree roots, everything that creates a jarring ride. By the time we were near Land-O-Lakes, a Wisconsin/Michigan border town, the trails were showing signs of wear. The sparce snow was being tossed off of the trails by the snowmobiles that had passed through before us creating ruts and moguls and an uncomfortable ride. The corners were now mostly ice and the sleds slid across them riding both lanes of the two-lane highway. Perfectly acceptable unless another machine is moving through the same corner at the same time in the opposite direction. Each year riders are injured by this exact setup, although most occur at night with limited visibility, higher than safe speeds, and alcohol as the kicker.

Once over the Michigan border, the trails convert to old railroad land. Most of the railroads disappeared from this area after WWII as the copper mines played out, populations decreased, and cars became more and more common. The rights of way reverted back to the State which removed the tracks and transformed the rights of way into bike paths in summer and snowmobiles trails in winter. These trails are wide, straight and flat. Time to ride fast with exhilarating speeds exceeding 60mph. For lunch, broasted chicken, mashed potatoes, and a Coke at the Watersmeet café.

The ride after lunch was wonderous passing through the Upper Peninsula’s wooded landscape with White Pine, Birch, Oak and Aspen predominating. Snow on the branches created a picture-perfect landscape. All of winter should be this magical.

Once back into Wisconsin, the trails became increasingly worn. The snow placed so perfectly by the last nights’ groomers had been thrown off the trails by riders like us. What was left was a frozen tundra, nothing more than ice and moguls. The much-improved suspension on newly designed sleds absorbs the shock to the body much more effectively than the designs of the 80’s and 90’s. However, the machines only absorb so much, the remainder is transmitted to the human form with bone rattling effect. Of course, younger bodies tolerate the shock much more efficiently. Old joints lack the cushion of those 30 years younger. Under the best conditions, I strain to keep pace with Josh and Zach on the trails. To no one’s surprise athleticism decreases with age along with balance, muscle tone, endurance, etc. and with the addition of lousy trail conditions, I found myself falling behind. Fortunately for me, they took pity on the old man and held up at appropriate points along the trails allowing me to catch up.

Once back to the house it was time for dinner and for me to curl up on the couch in front of the fireplace with a good book. The days ride was longer than most, almost 8 hours on the trails. For the next two days, we would follow the same pattern, an early start with a ride to lunch and returning to the house in the afternoon. Many friends have continued sledding well into their 70’s, I hope to follow suit.

Not too long ago the equity markets were smooth and steady, increasing the value of our portfolios seemingly year upon year. The last few months have seen increased volatility and generally falling markets. For many of our clients, this volatility becomes increasingly unnerving when combined with other events of the day like when combining rough trails and experienced bodies. Knowing this, we generally create more conservative Investment Policy Statements for many of our clients. In essence improving the suspension (of course, this is dependent upon their specific goals and tolerances). From a financial perspective, we believe that we will all make it back to the warmth and comfort of home after a long ride and to a good book by the fireplace.

We continue to believe that patience and a long-term perspective will allow our clients the best probability of reaching their goals and objectives.

As always, we thank you for your business and for your continued trust.

Sincerely,

Jack P. Cannata