After enjoying robust returns the last several years, 2022 has been a particularly challenging year for the markets.  We wanted to share insights that we believe will help keep you focused on your personal goals and financial plan.  We hope you will reach out to us anytime you would like to review your portfolio and your financial plan.

Rational optimism about the future and successful investing go hand in hand.  Please take a look at the chart below titled, “Almost 100 years of S&P 500 history” which shows the history of market performance as measured by the S&P 500, an index comprised of 500 companies among the largest in the U.S.  Life and the markets provide no guarantees about the future, but the long-term pattern in this chart gives us faith in the strength and resiliency of the American system, and it’s the reason we invest.  Investing is expending money with the expectation of getting paid for taking on uncertainty about the future.  It is putting money to work in pursuit of a future benefit or advantage.  We believe one must have faith in the future to achieve long-term success.



The benefits of taking calculated risks and deferring gratification are basic lessons we teach our children and they certainly apply to financial planning and investing.  If we want guaranteed returns, we must settle for instruments which historically do not keep up with the rising cost of living.

Here are some recommendations for navigating this difficult period in pursuit of your long-term goals.  We encourage you to limit your media exposure where short-term focused content is often meant to increase TV ratings or internet clicks.  Historically, markets have rebounded from downturns, posting strong long-term gains.  Now more than ever it is important to keep Warren Buffett’s quote in mind:  “The market is a device for transferring money from the impatient to the patient.”

STAYING ON COURSE:
As volatility has increased, continue to focus on what you can control.

• Reflect on the reasons you invest: to stay ahead of inflation, create a legacy, generate future income, care financially for loved ones, and have more life choices!
• Keep a balanced portfolio that matches your personal goals; most of the headlines have no bearing on your long-term goals.
• Monitor your rate of saving and spending.
• Have the right professionals to guide you in complex matters.
• Take care of your health and of those you love.

Past performance does not indicate future results.