Keeping in touch as always.  So far in 2022, the markets have struggled. Economic uncertainty, higher interest rates, global and political concerns all rule the news. We remain in uncertain times.

I do not try to predict the markets. . .most especially over short time periods.  But we have been saying with conviction for a while now that the risk was higher.  The world around us has been a challenging environment for quite a period of time.  The only thing sorta glaring has been that the financial markets had not really reflected it, but instead largely ignored the environment thanks to attractive monetary conditions that the FED set up (and probably left in place too long).   Stocks have forged ahead and we’ve certainly enjoyed it.  Just a small modicum of reality has been creeping in over recent times.  Honestly, for many stocks, it has been a struggle well back into 2021 but disguised by the phenomenal performance of a few high-fliers.  

We also said one would be able to “fill in the blank” with the reason for the correction when it did come and that also is the current case.  Higher interest rates, geo-political concerns (which are very real), a debatable state of the economy and employment, an overheated market. . . all could fit the bill.

Corrections are healthy and they bring opportunity.  I don’t enjoy them, but glad to see some backing up and glad to see some more attractive investing opportunities in our midst.  I would also say that, while corrections could be relatively short in time-frame, we are also possibly overdue for a calendar year where the stock market doesn’t go up, though I make no prediction of that.  The last decade has been wonderful and welcomed, but also surprising. Thus, I encourage patience in long-term investing – regardless of what happens next week or in the course of this year.

Having lots of conversations and always available to schedule our next one.  With wishes for peace and good regards,

Key