Broker Check

Q2 2022 Client Letter

The quarter in brief: 

As you can see above and on your personal investment statement, the market has suffered its worst first half since 1970. 

 But, if there is good news with that statement, it is that historically there has been little to no correlation between the market’s performance in the first and second half of any year.  For example, in 1970 the S&P 500 had its worst first six months ever being down 21% (2) but it gained 27% during the second six months.  That period, of high inflation in 1970, is often compared with the current situation.

 I’m certainly not saying all is good because there is no certainty how the second half will turn out.  But two things are going in our favor.  First is that the market has likely already priced in the probability of a recession and, second, some inflation is good because that means the economy is bouncing back from the effects of the pandemic over the past year.

 So if this ‘bouncing back’ concerns you and you would like to meet in person or by Zoom please let us know and we will get together immediately.  We want to make sure your portfolio is well positioned to take advantage of and/or protect from any long term negative impact that this current market volatility may have. 

 Do you have friends, family or colleagues who you think might benefit from having a conversation with us about this volatility?  Please consider sending them our way.  We would greatly value your referral. 

(1)    Sources:

(2)    Source: S&P Dow Jones Indices

 The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid.