It seems so long ago, all the way back to The Weekly Update I wrote for posting to the WSG website on 3/11/2022. In that update I pasted in The Fear & Greed Index from 3/4/2022. It was deep into “Fear” at 16. The S&P 500 closed the same day at 4,328.87. (Read it Here 3/11/2022)
The point of that update was to suggest that high fear levels are usually a point when we should add to the investments toward our bigger financial future.
As I write this update on 3/23/2022 for posting this Friday, 3/25/2022, the S&P 500 rests at 4,511.61. Up +4.22% in twelve business days! In The Weekly Update for 3/18/2022 (Read it Here), I detailed how one measure of risk, the Price to Earnings Ratio, was not even close to out of bounds and instead suggested there were values to be purchased in Corporate America. I still believe this to be accurate.
Our first goal is not to make our client family rich, instead it is the opposite! “Don’t make me poor!” That is why I opened this year’s Weekly Update on 1/7/2022 with “Five Year Money” (Read it Here) In this issue was a chart that detailed how over the last 41 years there were no five-year periods where the value of the S&P 500 was negative, hence our new “Five Year Money” theme.
As you ponder the recent news events, volatility the valuations of Corporate America with your bigger financial future in mind, you might also ponder what is “real” and what is “news”.
The news is rarely, if ever, fact-based. It is largely opinions and meant to grab your eyeballs to sell advertising. The scarier, the better!
Here are a few items to ponder that are real:
- It is good news that businesses are so busy they can’t keep up
- It is good news that 100 ships are waiting to unload on the west coast
- It is good news that new orders are at an all-time high and backed up for months
- It is good news that wages are up
- I would also argue that the current inflation has much to do with all the above. Demand is off-the chart. This is good and technology is already helping to solve some of these demand and distribution issues.
I’m interested in your thoughts, comments and observations. Feel welcome to call email or stop by the office and say Hi.
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal. No strategy assures success or protects against loss.