Wow, how quickly things can change and after nearly 30 years advising clients, not much surprises me anymore. As I mentioned that last 2 quarters, the good times of easy gains were bound to come to a pause and my it did in the first quarter. Market volatility picked up sharply in Q1 as investors digested a range of risks, from the COVID omicron wave to the Fed’s monetary policy rate hikes to Russia’s invasion of Ukraine and related energy price spikes. U.S. equities saw a correction of more than 10%, but rebounded somewhat in late March, with the S&P 500 ending the quarter down just 4.6% on a total return basis. The U.S. Energy sector outperformed sharply, up about 39%, as oil prices surged. The Financials sector outperformed, likely benefitting from rising interest rates, but was still down for the quarter. International stocks and Bonds suffered for the quarter. Bonds, particularly the more conservative kind(government/investment grade quality), declined in price due to the rising 10 year treasury bond. Yields on bonds are reaching a point we have not seen since early 2019 which is what the Fed hopes will slow inflation and most likely the economy down going into the second half.
As always, we will continue evaluating our portfolios and allocations to help meet our goals and find opportunities in the new market environment. Mid-term elections are around the corner and the chatter should pick up by summertime.
See more on the quarter: Here
SWM update:
Jeff and his family enjoyed another year of skiing in Utah and Montana. His son, Palmer, graduates high school in May. Jeff was just named again to the Forbes Best in State Wealth Advisor list.
Kevin and his family ventured down to Florida for Spring Break. Kevin completed Janney’s advanced financial planning workshop this quarter.
Allison and her family are looking forward to their first camping trip of the season. They are headed to Red Top Mountain State Park in Acworth, GA.
