Happy New Year to our clients and friends!
At the recording of this, our top topics were the broad market and economy. By the end of the day, the US Federal Reserve (the Fed) released their December minutes reporting on their plans for 2022.
They predicted they would raise interest rates “sooner or at a faster pace than participants had earlier anticipated.” The Markets understood these notes to mean that the Fed would tighten financial conditions and cool the economy faster than expected.
As is typical, the market sold off dramatically January 5th.
However, the Fed is communicating well and has done an excellent job of managing a “man-made” global recession due to a the global pandemic. The Market can anticipate what the Fed is planning due to their communication. Of course, “the Market” is made up of millions of people with “100s of millions” of opinions. So, the short-term action can be volatile. Yet, we feel confident in our portfolio construction and believe these will serve you well.
In my update, I closed with a question: what are your financial goals for 2022? Your financial goals are our financial tasks. Most of the time, goals are reached with great planning and discipline. I know that is not everyone’s favorite idea. We all wish the Markets would give us magical returns so that we could spend any amount of money we want. But that is not reality. Excellent planning and great discipline, in my opinion, are the most stable and predict way to get results. Have you told your financial advisor your goals? Please do so, and we will work hard to help you achieve these results.
Happy New Year & God Bless,
Investment Advisory Services offered through Sound Financial Strategies Group, LLC (SFSG), a Registered Investment Adviser. Certain representatives of SFSG are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC, 100 Enterprise Drive, Suite 504, Rockaway, NJ 07866 (800)637-3211. SFSG and APW Capital are separate and unrelated companies. The opinions expressed are those of Sound. The opinions referenced are as of the date of publication and are subject to change without notice. This information is not a recommendation to buy or sell a particular security or to invest in any particular sector. Past performance is not indicative of future results. Forward-looking statements are not guaranteed. Sound is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Sound's investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. SFS-22-02.