Click here for summary video. (3.5 minutes).
Texas decided to skip spring, and transition directly into summer. The markets also felt the heat throughout the first quarter of 2022, and it was challenging to say the least. After an extended period of mostly upward trajectory returns, it was a stark reminder that discipline is the glue that binds your financial plan and portfolio together. It was also a reminder that it’s impossible to predict markets. If you went to Vegas and had to place a bet… would international equities beat U.S. equities if Russia invaded Ukraine? Who would’ve wagered against the U.S.? Well, international markets did outperform the U.S. in Q1. Even more surprising, equity markets improved after the Russian invasion. Once again, the house would have won the wager, and it’s not an anomaly considering history (more on this below…).
Our firm belief is that making systematic data driven assessments each quarter maintains balance and avoids harmful biases. This is why we position your portfolio to be the ‘house’ and not the guy playing craps after a few martinis. Read on for more thoughts on core issues and themes for 2022.
We're big fans of vinyl records, so we’ll conjure up our broken-record firm mantra – never make changes to your portfolio based on news headlines, only your personal headlines! Your portfolio has always been positioned with the expectation that market volatility and inflation will occur. Staying disciplined isn’t easy, but history says it’s worth it.
Sources: Q1 2022 Index Returns dimensional.com, blackrock.com The Resilience of Markets Through Dark Times 3-9-2022, First Trust Value vs. Growth 3-18-2022, Fred.com, BLS.gov
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