Client Communications

As 2023 comes to an end, we look back at what transpired in the financial markets throughout the previous year and share our thoughts moving forward.

In light of the recent events surrounding the current banking industry, we share an article written by Charles Schwab regarding their perspective on the matter. 

As the year 2022 comes to a close, we recap on some of the highlights from the past year and give thoughts looking forward into 2023.

As we begin this update, Hurricane Ian is bearing down on the state of Florida expected to wreak havoc and destruction and we realize that investing is a lot like a hurricane.

The unfortunate convergence of several factors is driving consumer inflation to its fastest increase since December of 1981 as evidenced by the 8.6% year-over-year increase for May.

As a follow-up to the Market Comment we sent out to you on February 24^th, we felt there were a couple items worth discussing.  It has now been two weeks since Russia most recently invaded Ukraine bringing about significant devastation to the country and their people.

The current Russian invasion of Ukraine will create a great deal of uncertainty and speculation.  We can expect there to be ripple effects through the energy markets, investment markets, and possibly the European economy to a limited degree.  At present, this remains a regional conflict whose global impact is likely to remain limited.

The current bout of price volatility in the financial markets reminds us of March 2020 during the onset of OVID where we saw the market averages decline 30-35% in a matter of weeks. Although the current environment is not nearly close to that experience percentage wise, it can still be quite unsettling during the short term.

It is becoming more evident each month that our world may never be the same as it was a mere two years ago. The arrival of the COVID 19 virus and its mutation into the Delta virus and most recently Omicron seem to take us back one step for each that we’ve moved forward. Although science and the pharmaceutical companies will most likely provide vaccine protocols to eventually reduce the danger of this virus to flu-like statistics, the way many of us work and live has changed forever. Stay at home schooling, working from home, restricted traveling and entertainment all have taken their toll on us as social human beings. On the other hand, the popularity of Zoom meetings online as well as online education courses have allowed us more free time in our daily lives to pursue other interests and family time.

Recent market trading may be signaling a change in investor sentiment. Retail investors have been buying individual stocks lately at a record pace. The lack of sports, concerts, and other activities due to the virus lockdowns have left plenty bored and looking for something to do. The stock trading fee wars have produced multiple trading firms that allow trades as little as $20 with little or no fees. This has led to an astounding number of people using their government stimulus checks to buy stocks as if they were in a casino hoping for big hits.