TREVOR'S WEEKLY MARKET REVIEW

Last week was a bear...literally, with the S&P 500 moving past the 20% negative threshold from the peak at the beginning of this year.  Despite a mid-week rally last Wednesday, the same day the Federal Reserve increased the Federal Funds rate by .75%, the investment markets were ugly with continued concerns about inflation dominating. 

It has been a very long time since investors have had to endure a down market that lasted a while.  Many investors today were in a different phase of life back in 2008/2009.  Many my own generation had little to no money invested back then and many that are retired or close to retirement now, were years and years away from retirement then.  For almost all of us investors, this time is different because our place in life now vs. then is not the same.  Even if we have “been here before” we must acknowledge life today is different than 13 or 14 years ago.

So how do you prevail with your investments when you feel you are in uncharted waters?

•  You have a plan or make one and we can assist you with this.  Understanding your current financial picture and portfolio is a crucial first step.
• If you are working you must consider investing additional monies or increasing your 401(k) deferral so that you can accumulate more shares while they are less expensive.
• If you are retired or are nearing retirement you have to understand where your income is coming from.  If you have your cash flow needs accounted for, it allows you to have a longer-term investment mindset.  That longer-term mindset is critical to overcoming fears or concerns about a down market.  In short, you must have a well-thought out Retirement Income Plan.

The bond markets have delivered a bigger surprise than the stock markets in many ways with their year to date losses (for many bonds) measuring double digits.  Notable Number 1 in this week’s Weekly Market Review details just how incredibly unique this year’s bond market has been with a 60 year 12-month record being set in less than 6-months.  Remember, when it comes to the bond market as yields go up, prices come down. 

As always, we hope you find the Weekly Market Review both informative and interesting.  If you are feeling fearful or are deeply concerned about the investment markets we want to hear from you.  We believe we can help.

Click Here for the Weekly Market Review

Have a good week! 

Sincerely,

Trevor N. Coe, CFP®