February 2022
401(k) Allocation

There are trades.

Buckle up!

While most of 2021 was a smooth ride higher (two or three “wobbles” of 5% declines over the course of the year) – 2022 started out with more angst than we have seen since the start of the pandemic.  Many things contributed to that volatility including Federal Reserve changes to their previously ‘easy money’ policies and the beginning of interest rate increases this quarter; heated exchanges between the US and Russia regarding issues with Ukraine; a rough ride through Q4 earnings season as many companies met or exceeded expectations – then gave challenging forward guidance for this quarter.  The latter is being driven by on-going issues in the supply chain and with “employment reluctance” – more job openings than people to fill the positions.

The balance of 2022 will likely continue this theme of turbulence as we make this transition to slow the money printing presses and see how the world has now changed going forward and what those implications are for the economy and investing.  What we will try to not do – is react to each wobble in the market with a hair trigger.  Investing in this phase of the economic cycle requires a bit more patience.

If you need assistance with rebalancing your portfolio, please don’t hesitate to reach out to us at the office and we will be glad to provide assistance!  Remember when you rebalance to do so for both your current allocation (dollars already invested) as well as future contributions (new money).

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
TAX PLANNING
GRAPHIC OF THE MONTH

To download the February 2022 Newsletter: CLICK HERE

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