Broker Check

March 8th Market Update

March 14, 2022
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Dear Friends and Clients,

As I write this, we are having a tough day: the war in Ukraine, oil prices spiking, and interest rates about to start rising next week to battle inflation from a restarting economy that has had excessive stimulus to stay out of a recession due to Covid-19 variants.  One would say it’s hard to be enthusiastic, but I am, much more so than I was this past November and December.

I think we are very near a bottom on the S&P 500 of about 4,000 – we’re at 4,200 as I write this, so maybe another 5% down to go.  The NASDAQ should bottom at about 12,500 with maybe another 3-4% pullback left.  And the DOW, which is a small group of 30 stocks, has a current average at 32,875 may continue to reach about 32,000. 

All of these prognostications are based on technically charting the market a variety of ways.  You may be surprised at how well these predictors have worked in the past, and although past performance is no guarantee of future results, I think the second half of this year is setting itself up to be a good opportunity to buy stock in some great companies.  We are ready with a “shopping list” of great companies to own for the long haul that may provide above average returns.  And this list grows a little bit each day while we wait for things to calm down.  Until then, we must get through the monthly statements that don’t make us feel good.  I understand the concerns and fears with the market, but the markets never move straight up nor straight down.  And, as history has shown, buying great companies in times of turmoil has always paid off in the long run.

Feel free to call us to discuss and review your goals, along with your plan that we have made for you.  We have experience with investing through periods of turmoil: two Gulf wars, 9/11, the war in Afghanistan, the financial crisis of 2008, Covid-19, and now the Russian aggression and war in Ukraine. This isn’t our first crisis, nor will it be our last, but every single one of these events has proven to be great buying opportunities.  Let’s let the other market participants panic and we’ll be ready to continue to own great names and buy more as the opportunity comes knocking.

 As always, our team of Amy, Glenda, Nikki, and myself are ready to help you and answer any questions or concerns you may have.

Sincerely, 

Jim Charbonneau

Financial Advisor, CEO