Although market pullbacks and corrections happen more often than we tend to remember (see page 10) and can be healthy for the overall economy, we understand it can still be emotionally challenging to keep the facts in the forefront. Watching the markets tumble this year has certainly been frustrating and at times, unsettling. Please know we are consistently monitoring your portfolio, the managers, and their performance during this market volatility keeping your long-term goals in mind.
Over time the markets have acted similarly to world events, even in recent times (see page 2). While no one knows what exactly will happen with world tensions and our economy, we remain optimistic for these reasons:
- The economy is still expanding and almost every business is looking to hire employees. Wages have risen but profits have as well.
- The supply chain, for most businesses, is improving and should continue to do so helping to curb rising costs by providing more choice, competition, and quantities.
- Corporate profits, which have the most to do with stock prices, are at record highs and are projected to continue to grow in 2022.
Things you can be doing right now to take advantage of today’s market:
- Roth conversions – if you have an IRA that you’d like to convert all or a portion to a Roth IRA, balances are low right now, making the taxable amount less than a year ago
- Distributions - delay discretionary, large distributions until markets rebound
- Tax Planning - rebalance portfolios to take some losses today to use to offset future gains
- Additional investments – if you are in the accumulation phase and have some extra savings, cash, or money market balances now may be a good time to buy low
If would like to take advantage of any of the above opportunities, or would like to discuss your portfolio, please do not hesitate to contact us. We are here for you – this is when you need us the most.