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Last December our year-end email focused on supply chain issues, growing inflation, the dominance of growth stocks, and surging interest in cryptocurrency. We surmised growth stocks could have a challenging time in 2022 should interest rates rise rapidly and speculative investments could come under extreme pressure.

Before looking ahead, we think it instructive to review 2022 in all its horribleness.  We know it has been a difficult year for investors and here is some data to put things in perspective, all of which was taken from Morningstar, Inc.

Investors looking for inflation relief in the September CPI data report were sorely disappointed as the gauge of consumer prices rose to a 40-year high.  There are many indications that inflation may start to moderate including an increase in announced layoffs by large corporations, falling auto prices, falling housing prices, a buildup of inventory, and the supply chain continues to come

Inflation – like a tiresome house guest, has decided to stick around awhile

On Wednesday August 24^th, 2022, President Biden announced the Student Loan Debt Relief Plan, which was proposed during his campaign. Details of the plan are still being finalized, but the main piece is the forgiveness of some student loan debt. Although this may not affect you directly, it could pertain to your child or grandchild.

The Inflation Reduction Act of 2022 was recently signed into law. There are many parts of the new law, including prescription drug reform, tax reform, and increased funding for the Internal Revenue Service. The law also represents the largest investment into addressing climate change in United States history.

The old Wall Street adage is that the time to invest is when you have money to put to work.  Over the long-term it is time in the market rather than trying to time the market that really matters.  But what about now? Lately, several clients have reached out to us with money to invest, but worried about doing so when the markets have been so volatile.

Recession Outlook

Inflation is when you pay fifteen dollars for a ten-dollar haircut you used to get for five dollars when you had hair – Sam Ewing

May 2022

Inflation Protection Bonds

Earn 9.62 percent through October and protect against high future inflation