2022 Year In Review
Every January, it’s customary to look back at the year that was. What were the highlights? What were the “lowlights”? What events will we always remember? Most importantly, what did we learn?
THIRD QUARTER 2022 MARKET REVIEW
Bob Farrell examines market and economic environments through 3Q22.
The Bear is Back
Have you ever been caught in rush hour traffic, and the lane you’re in just won’t budge? Meanwhile, the lane next to you seems to be moving just fine. So, as soon as you see an opening, you merge into that lane – only to immediately slam on your brakes. Now the new lane is backed up! So, you try again…until you find yourself in the very lane that’s closed off and causing a traffic jam in the first place. This is what emotional, undisciplined investors do during bear markets.
Turbulent Times
Remember when you were learning to drive, how new and scary it could be? The first time you merged onto the freeway. The first time you switched lanes during heavy rush hour traffic. The first time you parallel-parked on a busy street. The first time you drove in heavy rain or in the snow.
Eventually, though, each of these actions became easier and less stressful…To the point they became second nature. After all, you’d seen it all before. You’d done it all before. No matter what bumps in the road you encountered, you always knew exactly what to do.
First Quarter 2022 Market Review
Listen to Bob Farrell's market review.
A Short Guide to Dealing with Market Corrections
If you’ve been paying attention to the news, you know the markets have endured a topsy-turvy month of January. As a result, the S&P 500 and Dow Jones are both on the verge of what analysts call a market correction.1 (Something the NASDAQ already entered last week.1) Should this volatility continue, you’re likely to see that term a lot in the days ahead.
Headlines proclaiming a market correction can often look very scary. That’s a problem because fear is every investor’s worst enemy. It’s what drives investors to make irrational and shortsighted decisions instead of sticking to their long-term strategy. So, in this letter I’m going to give you a few simple steps for dealing with the market correction that will never go out of date.
2021 Year In Review
Every January, it’s customary to look back at the year that was. What were the highlights? What were the “lowlights”? What events will we always remember? Most importantly, what did we learn?
In many ways, the journey we took in 2021 was a microcosm of the journey we take to our dreams and financial goals. To illustrate how, let’s look at seven dates from the past year. Now, I’m not saying future generations will see these dates in the history books. They have nothing to do with politics, sports, pop culture, shocking headlines, or anything else people tend to remember. But they’re not arbitrary, either. Each date is a snapshot of how the markets performed throughout the year. I chose them because they reveal an important lesson about what it means to grow and progress.
Happy Veterans Day
Happy Veterans Day!
As you know, Veterans Day is a chance to honor those who have served our country. Of course, we always hope that when soldiers return home from defending our country, they are rewarded for their heroism. Sometimes, it may be in the form of a ticker tape parade. Sometimes it may be a medal ceremony. Sometimes it may be a plaque hung in their honor at their old high school. It can come in many forms, but recently, I read about one soldier – Air Force pilot Royce King – who received the greatest reward of all. You see, Royce got to watch his wife walk down the aisle in her wedding dress.
He just had to wait 77 years to do it.
Market Update Third Quarter 2021
Bob Farrell examines market and economic environments through 3Q21.
Labor Day: A Life Worth Living
If you think about it, almost every major holiday centers on gratitude. Of course, gratitude probably isn’t what most people think of when it comes to Labor Day. But it should be. Because with Labor Day, we have an opportunity to give thanks for some indispensable rights and privileges – and the men and women who risked everything to win them for us.
Quotes About America
Every Fourth of July, we all spend the day reflecting on how fortunate we are to live in this great nation. I’m so grateful to be an American! And while I certainly have thoughts about what makes our country “the land of the brave and the home of the free,” I thought it would be good to share the thoughts of a few Americans who were much more important – and much more eloquent – than me. Here are some of my favorite quotes about what makes our country special.
Memorial Day and The Eisenhower Proclamation
When I was young, I remember asking my parents why we observe Memorial Day. That’s when my parents showed me something I’ll never forget. It’s a speech given by President Dwight Eisenhower – and if there’s any president who understood the “why” of Memorial Day, it was surely Ike. In honor of this Memorial Day, I’d like to share those words with you right now.
ROBERT FARRELL NAMED TO FORBES 2020 BEST-IN-STATE WEALTH ADVISORS LIST
Janney Montgomery Scott LLC, a leading full-service wealth management, financial services, and investment banking firm, is pleased to announce that Robert Farrell, Executive Vice President/Wealth Management, Financial Advisor has been named to the Forbes 2020 Best-In-State Wealth Advisors list.
2020 Year In Review
Every January, it’s customary to look back at the year that was. What were the highlights? What were the lowlights? What events will we always remember? Most importantly, what did we learn?
Here's the problem, though: How in the world do you recap a year like 2020? So, I thought for a long while about everything that happened last year and decided to focus on three important lessons that we as investors can learn from 2020.
First Trust Stock Index Forecasts
Profits and interest rates drive stocks, we let these factors determine our outlook. Not politics, not fear, not greed…just math.
Breaking Down the Pre-Election Volatility 2020
It’s not about placing bets. We’re investing so that you will have the means to do what you want, where you want, when you want.
End of Summer 2020 Market Update
So, as this crazy summer draws to a close, let’s look at the different scenarios we could experience over the next few months.
Why Labor Day is Worth Celebrating
As we approach Labor Day, let us pause and reflect on the circumstances that make this year’s holiday unique.
Summer 2020 Market Update
I’ve been thinking about this a lot as I’ve studied the markets over the past few months. There’s simply no cheat sheet – or even a roadmap – for how to invest in a period like this.
Happy Fourth of July!
We wish you a safe and wonderful Independence Day.
Coronavirus Market Update June 2020
The rally was largely driven by two things: hope and fear. If that seems contradictory, bear with me. It will make sense in a moment.
“When this is all over, what will I wish I had done?”
Investors are bombarded every day with opinions (informed or otherwise), data (informative or misleading), and news (real or fake). As a result, many investors have panicked. When the pandemic resolves and the markets rebound, what will they wish they had done?
The Medal of Honor - Ben Salomon
The most trying ordeal he was ever supposed to encounter was a mouth full of cavities or a particularly tricky root canal. But when his country called, he answered – serving as the dental officer for the 105th Infantry Regiment of the U.S. Army.
Motherhood Behind the Scenes
In the pursuit of excellence, most of the heavy lifting goes on “behind the scenes.” But since we don’t see it, we often don’t think about it – and thus, we fail to appreciate it.
Breaking Down the CARES Act
Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It’s a massive, $2 trillion stimulus package designed to help everything from hospitals, to individuals, to businesses large and small. Time will tell if it will be enough to blunt the impact of this pandemic, but the fact Congress was able to pass something so significant, so quickly, is a rare feat worth celebrating.
Quarterly Statements
Under normal circumstances, our team strives to reduce your stress as much as possible – at least as it pertains to your money. But these aren’t normal circumstances.
This Is What You Pay Us For
Currently, emotions are running very high with many investors. Soon, they will discover what we already know: That acting out of emotion usually means overreacting. And that’s never a good thing.
React By Not Reacting
We know when there is global panic, it can't help to spill over into the families here in our community. We know lots of people are concerned.
Coronavirus Market Drop
It started in China, then spread to South Korea and Japan. Cruise ships have carried it; tourists have transported it. Now it’s in Italy and Iran, Thailand and Taiwan, and more countries besides. It has infected almost 80,000 people and been fatal to over 2,600.
2010-2019: The Decade in Review
Every January, I send my clients a letter titled The Year in Review, where together we look back at the year that was. What were the highlights? What were the “lowlights”? What did we learn?
But this January doesn’t just mark a new year. It marks the beginning of a new decade. So, for this letter, we’re going to look back at what shaped the markets in the 2010s – and what lessons we should take with us into the ‘20s.
Breaking Down the SECURE Act
In December, Congress passed a new bill called the Setting Every Community Up for Retirement Enhancement Act, aka the SECURE Act. Besides proving that Congress can make an acronym out of almost anything, the bill – which goes into effect on January 1, 20201 – makes some important changes to various rules on saving for retirement. Many of these changes are positive, in the sense that they should make it easier for people to save more for longer. However, the SECURE Act also eliminates a popular estate planning tactic that many Americans have used to help their family after they pass away.
The American Veterans of World War II
There were sixteen million of them once. All serving so that uncountable millions more would live free from tyranny. Now, they are almost gone – and it’s up to us to ensure that what they accomplished lives on forever.
The Importance of Asking Questions
He who asks a question is ignorant for a minute. He who does not remains ignorant forever
Recession 101
For over a year now, economists have fretted about the possibility of a recession. The amount of evidence for one has waxed and waned, as good news and bad have jockeyed for attention. But recently, the signs in favor of a coming recession have started to light up in neon.
How Important Labor Still is Today
Happy Labor Day! As you know, this holiday is for celebrating the Labor Movement and the contributions workers have made to our nation’s history. But in recent years, as our society has grown ever more automated and modernized, I sometimes think we forget how important labor still is.
Financial Noise on Full Volume
Have you ever been to the doctor and told him or her what WebMD said? I did that once. I told my doctor that my Apple Watch had woken me up to tell me my heart rate was low. He asked, “Well, what did Doctor Apple tell you to do?” I got his point. Doctor Apple doesn’t know me or my health. Doctor Apple was reacting to one number.
How Inverted Yield Curves Work
If you ask an economist what makes them toss and turn at night, chances are they’ll tell you, “Fear of missing the warning signs of a recession.” After all, for anyone who studies the economy for a living, few things could be worse than a sudden economic slump catching you by surprise.
The Trade War and China's Devaluing of Its Currency
China has introduced a new weapon to use in the trade war with the United States. That weapon? Its own currency.
On Thursday, August 1, President Trump proposed a new slate of tariffs on Chinese goods. In response, the Chinese central bank devalued its currency – the yuan – to more than seven to the dollar. (That means that one U.S. dollar would buy you over seven Chinese yuan.)
Why You Should Not Make Financial Decisions Based on Politics
There’s a saying that you shouldn’t mix business with pleasure. Far less well known is the concept of never mixing personal finance with politics.
Managing Your Most Precious Asset
Do you know what your most precious asset is?
It’s not your house. It’s not your car. It’s not your investment portfolio.
It’s your time.
Abraham Lincoln's Powerful Words on the Declaration of Independence
Almost two-and-a-half centuries ago, fifty-six great Americans signed the Declaration of Independence. It was a document that would change the world, but after the Revolutionary War ended, it languished in relative obscurity for many years. In fact, to many, the Declaration was merely a simple letter that had served its purpose.
Three Financial Principles our Fathers Taught Us
The older I get, the more I realize how important my dad’s lessons were in shaping my life. Now, as a financial advisor, I also realize how important fathers can be in shaping a child’s financial future. That’s because they’re often the first people to teach us good financial habits and principles – principles that remain with us for the rest of our lives.
Trade War Risk Management - How to Manage Risk During the Trade War and Economic Uncertainty
If someone were to put you in a room and force you to do nothing but read headlines and predictions, you’d probably get whiplash. That’s because there’s always so much conflicting information and analysis out there about what’s happening, or what’s going to happen. The result is a lot of uncertainty – and if there’s one thing the markets hate, it’s uncertainty.
In this letter, I want to briefly recap a few of the stories behind that uncertainty. Then, I want to tell you exactly what my team and I are doing about it.
BOB FARRELL NAMED TO FORBES 2021 BEST-IN-STATE WEALTH ADVISORS LIST
For the second consecutive year, Bob Farrell, Executive Vice President/Wealth Management, Financial Advisor has been named to the Forbes 2021 Best-In-State Wealth Advisors list.
Examining the Cause and Effect of the New Tariffs Between the U.S. and China
After months of relative quiet, the trade war between the U.S. and China has erupted again in a big way. The markets are the most immediate casualty, with the Dow plunging over 600 points on Monday alone.
In all likelihood, you’re probably more focused on things like spring cleaning, your upcoming summer plans, and the end of Game of Thrones.
My job in this letter is to briefly explain what’s going on, what matters, what doesn’t, and why you can go back to focusing on those other things.
How the Russian Invasion of Ukraine May Affect Investors
On Thursday, February 24, after months of tension and military buildup, Russia invaded Ukraine. It’s the first major war between European nations in decades and brings significant humanitarian and economic ramifications for the entire world.
I want to assure you that my team and I have spent a lot of time analyzing the situation and how it might impact you. We’ll go over some of the details in a moment, but the most important thing for you to know is that we are keeping a close eye on everything. We remain confident in our investment strategy as well as the path to your financial goals.
Now, let’s do a Q&A about how this conflict will impact investors. These are some of the most common questions I’ve heard from clients over the past few days.
