Broker Check

First Quarter 2022

The financial markets stumbled into the New Year as if they were still drunk from the night before. Just when they were about to regain their footing, Russia invades Ukraine and causes the markets to tumble again. The stock market dropped into bear market territory as investors navigate higher interest rates, shocking inflation levels, an unsettling war in Ukraine, and the overall health of the economy.

The global economic shutdown resulted in supply chain issues that continue to drive up costs today. The Federal Reserve is expected to raise interest rates 7x this year in effort to cool off demand and alleviate some pressure from supply chain issues. While our hearts ache for the people of Ukraine, investors are worried about disruption in distribution channels as the invasion draws out, sanctions pile up, and corporations pull out of the Russian markets. The imbalance of supply and demand, coupled with shortages in labor and commodities, have left consumers reeling from the pain of inflation for the first time in 40 years! Investors are weighing numerous possible outcomes and pricing in the worst possible scenarios.

As we know, extreme uncertainty ensues fear, especially the fear that this time is different. When we look back at other times of extreme uncertainty, the Pandemic being the most recent, we can see the same pattern: markets fall into bear territory, bounce back, and hit new record highs shortly thereafter. History shows us that those who stayed invested will often get rewarded for their patience.

Regardless of the negative headlines driving investor sentiment, we believe it is always prudent to focus on what you can control. We recommend reviewing your risk tolerance and financial objectives to determine if they are in line with your target mix of stocks/bonds, cash needs, and money goals. If there have been any changes to your financial situation, please let us know.  The value of our advisory services is enhanced when we are actively strategizing with you to address your financial concerns. 

Every year, we are required to update our company disclosures, ADV Part 2A and 2B and notify you if any material changes were made. This year, there were no material changes to report. Our services, fees, and the way we do business remain the same. If you’d like to view our 2022 ADV Part 2A and 2B, please click here. If you’d like to request a hardcopy, please call us at 925-553-7200.

In closing, we would like to reiterate how much we appreciate your trust and confidence, especially during these turbulent times. We stand united in the global effort to support the Ukrainian people.