Insights

Student of the Market

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Markets are always influenced by external factors that are beyond the control of investors.  As valuations rise and fall, it is important to remain calm and maintain perspective.

Market volatility is always provoked by changes in prevailing interest rates, geo-political unrest, and global economic strengths and weaknesses.  Every situation is slightly different, however, history offers incredible insight into how markets have and will respond.

We hope you enjoy the latest edition of “Student of the Market”.  Remember that what happens in the short term will likely have a very limited impact on your long-term investment results.

Student of the Market

Women, Wealth & Well-being

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Women are becoming a powerful economic force and may soon hold much of the wealth in the United States.  For countless women, wealth is not merely quantitative, but qualitative.  It is about realizing objectives, living into relationships and being able to explore interests important to them.  Their approach is governed by a thoughtful and refreshing perspective.

Women, Wealth & Well-being

 

Which Tax Documents Should I Save, Which Should I Shred?

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For many, 2021 was consigned to history with the recent filing of their 2021 returns.  The only remaining question—what financial records do I need to keep and which ones can I safely shred?  The attached article seeks to address this lingering concern.  After all, who doesn’t want a more organized desk or file draw?

Which Tax Documents Should I Save, Which Should I Shred?

3 Views on the Russia-Ukraine Conflict

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Russia’s invasion of Ukraine has been nothing short of a humanitarian disaster. The global financial and political strife that has followed pales in comparison with the hardship and loss of life perpetrated on the Ukrainian people. Yet as investors, we must look at the economic and financial implications. Attached are three perspectives, each from a highly respected industry veteran, on the impact to the world economy, financial system and political order. We welcome any questions you may have.

3 Views on the Russia-Ukraine conflict

2022 Global Outlook

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As we ushered in 2022, much of the investment community was already preparing for a ‘new normal’.  Most agree that we will likely never eradicate COVID.  Inflation may remain elevated for some time, as the Fed fears acting too aggressively and plunging the economy into recession.  And heightened geo-political tensions persist.  Is it a ‘new normal’ or an ever-evolving landscape?  Either way, markets can, will, and must adapt.

2022 Global Outlook

How Much Will the Fed Raising Interest Rates Affect You?

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If the Fed begins raising interest rates next month, as it is widely expected to do, how will you be affected?  How much will you be affected?  The consensus among investors is for several rate hikes this year.  What will be the impact?  This article offers some important perspective.

How Much Will the Fed Raising Interest Rates Affect You?

How to Avoid a Tax Bomb When Selling Your Home

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Low interest rates have spiked demand for housing over the last two decades.  Sale prices have more than doubled.  But like all capital assets that have increased in value, taxing authorities look to collect when it’s time to sale.  You can, however, lessen the hit, to your bottom line.

How to Avoid a Tax Bomb When Selling Your Home

2022 Financial Planning Outlook: 3 Trends and Implications

As we enter what may well be a period of transition, effective planning will become increasingly important. As highlighted in the attached piece from Schwab, one of our two recommended custodians, three planning trends will likely dominate the near term—rising inflation, taxes, and the changing landscape of a post-COVID world. In sum, Schwab’s position, and ours—successful investors always start with a plan.

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2021 has been a boom year for equity markets, while inflation expectations have shifted, and many workers in the emerging post-COVID world have reconsidered what their work, finances, time, and health mean to them. As always, we believe that successful investors start with a plan—whether it’s to start saving and investing, or to manage, protect, and use wealth they already have. Heading into 2022, we see three trends that could have implications for financial planning and wealth management:

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Why a January Market Correction Might be Good

Are market corrections healthy? In a word, “yes”. Are market pullbacks common? Very. Corrections prevent bubbles, which occur when market valuations are no longer supported by underlying earnings. Investors become speculators. When a bubble bursts, it can send shock waves throughout the market and economy. On the other hand, a correction, while at times disconcerting, is simply a value re-set. And, yes, that is healthy.

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Why a January Market Correction Might be Good

Source: Financial Media Exchange

2022 Outlook: Long-Term Perspective on Markets and Economies

Over the past ten-plus years, we have witnessed unprecedented growth in equity markets, as Central Banks around the world lowered interest rates and boosted bond purchases. Rising inflation is now expected to force these bankers to curtail stimulus, amidst a back-drop of geo-political concerns–slowing growth in China, Russian troops amassing on the Ukraine border, and mid-term elections stateside. Economic growth is expected to continue, sustaining advancements in equity valuations. Still increased volatility may become the norm as markets grapple with uncertainty. While investors should prepare for some instability, they should also prepare to stay the course; a long-term perspective is the best defense. Allocation and fundamental selection will be critical, as investors embrace a changing horizon.

Long-Term Perspective on Markets and Economies

 

source:  Capital Group Outlook 2022 Edition