Dog Days of the Bear Market
This has been a tough year for investment markets with rising interest rates producing a common result for investments of all kinds, in dollar terms:
This is Not The 1970’s
And that’s what makes a market. There are intelligent, experienced people in both camps. From our point of view, inflation is headed in the right direction with oil prices down pretty consistently over the past two months, with some retailers cutting prices, the housing market stalling, and with the prospect of some layoffs on the horizon.
Nibble, Bite, Swallow
Well, we’re not in no man’s land anymore! The markets turned hard over the past few weeks on the threat that inflation would stay higher for longer and that the fed might raise interest rates farther than expected.
Where It All Began
I got my first job after college by going to the job fair my senior year. I talked to the guy in the best suit, and he worked for MassMutual. Geno became my first professional mentor and a friend. He talked about financial planning and investing. Helping people make good decisions made sense to me.
No Man’s Land
It’s not too late to rebalance. You can still choose to get your risk levels right, but these decisions get more difficult than they were a few months ago.
Signposts of a Bear Market Credit Contraction
Investments don’t just come in to the “right price.” They usually overshoot.
Money Is (More) Scarce
The early part of 2022 has given us declines in both stocks and bonds. That is happening because we are a in a credit contraction.
Watch Your Speed, Don’t Lose Your Mind
If you’re watching the financial news, there are factors in the economy and markets that could give you the willies. From our standpoint as investors, preparing for volatility also means being ready for opportunities that emerge as the world changes and the markets react.
Volatility Is Your Opportunity To Rebalance
This probably isn’t the last of the volatility for the year, and we haven’t necessarily put in the market lows.
Outlook for 2022: A Year of Transition
We believe 2022 is a transition year. A transition away from Covid as a novelty and into Covid as an endemic disease. A transition away from money creation and aggressive subsidies by the federal government.