Q1 2022 Winter Newsletter

Happy New Year! It doesn’t seem possible that it is 2022. This marks my 25th year of being a financial professional, the 20th year of our affiliation with LPL Financial, and the 10th year in our current location. Mark May 19th on your calendar as we plan on having an open house and Chamber of Commerce Business After Hours to celebrate.

ECONOMY

The economy appears to have grown robustly in 2021 with strong corporate earnings. Inflation, however, is the big story as it has proven to be stickier and higher than the “experts” expected. With the Federal Reserve poised to hike rates this year, we will see if once again the Fed is a day late and a dollar short, as the saying goes.

MARKETS

2021 was a year of strong S&P 500, Nasdaq, and real estate performance. Other investments such as midcaps, smallcaps, and international had on average far milder returns. Bonds, as of this writing, were broadly negative except for inflation-linked treasuries. Fewer and fewer stocks are participating in this rally; since March the Nasdaq has gone from almost 90% of stocks above their 200-day moving average to fewer than 35% in December. Something is going on and with an expensive market, investors should be prudent. This is likely not the time to abandon a good strategy.

TAX POLICY

While nothing has passed as of mid-December, this is ever-changing. We will be sure to send emails as we learn what is changing.

Thanks for your continued trust.