March 2022
401(k) Allocation

There are trades.

This is a challenging market and the trades this month reflect a desire to lower the volatility in the allocation.  We have seen daily swings in the markets as everyone digests the evolving situation in Europe; uncertainty breeds fear and fear means volatility, but you may have noticed some rather large positive days sprinkled in with the negative days!  How is this possible when it feels like the world is a hot mess?

First, the US economy is still performing well, for all the challenges of the past few years.  Secondly, we are now back in the phase of “bad news is good news”.  The Ukrainian crisis is leading markets to expect a more dovish Federal Reserve than would have been anticipated at the beginning of the year.  We have said often that the Fed and liquidity are what has driven our stock market and having priced in an aggressive removal of the liquidity that markets have enjoyed the past two years,  the market is now adjusting that expectation.  

Near-term, as events in Ukraine play out and we see what is next from Putin, expect bumpy days and bumpy markets.

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
TAX PLANNING
GRAPHIC OF THE MONTH

To download the March 2022 Newsletter: CLICK HERE

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