Market Commentary

Q4 2021 Market Commentary

The last quarter of 2021 started on a positive note as we recovered from a downturn during the month of September. Despite
the lack of complete answers to issues such as inflation, the direction of the Federal Reserve and the mystery that is the labor
market, the belief that all the right questions were being asked gave markets a certain level of confidence as we forged ahead.
Then came the news regarding a new variant of Covid emerging from overseas which triggered a moment of déjà vu. As we
replayed the beginning of the pandemic in our minds and recalled the fear that was associated with unfamiliar uncertainties, it
was remarkable how markets maintained a calmness resulting in manageable volatility. Downside risk was never truly tested
during the mild roller coaster ride and equity markets eventually closed out the year near all-time highs.

Based on the available fundamental data, we believe equity markets closed out the year in overbought territory. As long-term
investors, not only are we waiting for 4Q earnings reports to conclude 2021, but we are also seeking 2023 projections. This
information will provide us with an updated perspective as to where market levels are relative to new fundamental data. We will
soon have a better idea as to what upside potential may exist for 2022, what support levels look like in determining downside risk
and identifying oversold opportunities.

Entering the new year, capital markets did feel some tremors after a year-end close where the foundation in confidence stood in
the way of pandemic concerns. This confidence was supported by our ability to ask familiar questions about the new variant,
Omicron, and how it measures against defined benchmarks/variables established by the Delta variant. The existence of
established guidelines in the analysis of how a new variant may move through the population and impact global economies
provided a relative advantage in evaluating Omicron. Watching a less aggressive, yet more contagious Covid variant unfold did
provide a small sense of relief for the long-term outlook.

While taking a moment to breathe easier about Omicron’s possible economic impact, a sudden spike in the yield on the 10-year
Treasury from approximately 1.4% to 1.8% certainly caught the market’s attention. Inflation & interest rates were now back in the
spotlight as we digest more guidance from the Federal Reserve. It does not help when statements can be interpreted as a glass
“half full” or “half empty”. Market reactions have reflected patterns based on perceived correlations derived from the past. As we
observe patterns such as the technology sector pulling back due to anticipated higher rates, we also believe that such
correlations should not be set in stone, using the tech pullback as an opportunity for the long-term. As for sector expectations,
we believe that energy and financials will continue to perform well in an inflationary environment throughout 2022, noting that
upside may not be to the extent of 2021 results.

Looking back at the beginning of the pandemic, we realize that many challenges have been faced by all. We want to express our
appreciation to our amazing clients for their incredible support and confidence in us as we continue to navigate this challenging
landscape together. As always, please reach out to your adviser should you have any questions regarding your portfolio or your
financial plan. Wishing everyone a Happy & Healthy New Year!

Q3 2021 Market Commentary

After contently watching domestic equity markets hover near all-time highs during most of the third quarter, markets eventuallysuccumbed to rotating concerns resulting in the S&P 500 pullback of 4.76% during the last month of September. As we remainconfident in...

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Q2 2021 Market Commentary

It is remarkable that we have already moved through the first half of 2021, and yet, the passage of time appears to be moving slowlyas we continue to monitor economic indicators for clarification on the global path of recovery. Two persistent issues remain at...

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Q1 2021 Market Commentary

Equity markets continued their march upward during the first quarter of 2021 supported by economic hope and a recovery in corporatefundamentals. As we move along the vaccination timetable, a sense of light at the end of the pandemic tunnel becomes morepalpable even...

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Q4 2020 Market Commentary

Market resilience was a pleasant surprise during 2020 after falling off a cliff in the first quarter. The sense of a bottomless pit was driven by overwhelming uncertainty associated with the introduction of COVID-19. The recovery in market levels was a positive sign...

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Q3 2020 Market Commentary

The third quarter can be described as “bittersweet” as markets approached all-time highs before backing off in a healthy manner. It was reassuring to see how market resilience benefitted client portfolio values, but as markets continued to climb without regard to any...

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Q2 2020 Market Commentary

We moved through the second quarter as observers watching economic history unfold as COVID-19 initiated the shutdown of all non-essential businesses. This resulted in an initial unemployment claims figure that did not even come close to any street projections. The...

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