Have you ever flown into the Phoenix airport on a hot day?
If you have, you know that just before landing the excessive hot air makes for a
bouncy and shaky approach. Passengers can become nervous and uncomfortable
if they don’t know what’s coming. However, good pilots have learned to reassure
their passengers with a simple heads up: “Hi, this is the captain from the flight
deck. We will be experiencing some turbulence shortly. It’s going to get bumpy,
so try to relax, and understand that this is normal for Phoenix. We will have you
safely on the ground in a few minutes.” What a difference a heads up can make!
After a relatively smooth ride upwards for more than a decade, the chaos of the
pandemic jolted the financial and business world. However, with low interest
rates, positive corporate earnings and unemployment going down…the recovery
was not long in the making. From the pandemic’s negative effect in March of
2020, the S&P 500 gained 74.7% in the next 12 months.1 Although equities can
experience extreme volatility in the short-run, investors who remain committed
to long-term growth have been consistently rewarded over longer periods.
It’s a fool’s game to predict the future. If you are on the right path for growth,
then stay on it, ride these bumps out, and you will have a very profitable
portfolio. At least, that has been our experience. For our new clients who have
experienced this bumpiness early on, please be patient. We keep to the game
plan and continue to buy when these markets go “on sale”.
With the threat of war in the Ukraine and the constant chattering about inflation and rising interest
rates, the S&P 500 was down 6.93% in January. The sectors with the biggest
declines last month were Consumer Discretionary (13%), Real Estate (9.6%), and
Technology (9.3%). These are sizeable dips, but one month does not make for a
good investment perspective. For the last 12 months, the S&P was higher by
18.6% and the Dow was up 15.5%
A very important client email will be coming your way soon: our fee schedule
and compliance update to your profile and suitability. It is our best guide to
matching your investments with your personal risk tolerance. Please complete
and return to us within 10 days. Thank you.
The Rams and the Bengals are in the Super Bowl. Let’s hope it’s a close and
exciting game…or at least the commercials are captivating and fun.
Mitch Fisher
Ryan Fisher