A lot happening in the markets so far this year, and our Investment Committee met recently, comparing data from major institutional money managers and other advisors.  Here are some notes for you to know and share:

  • We see the “party” in the markets possibly continuing longer, but we are starting to feel the “euphoria” in the market coming closer, which often signals correction. But remember, corrections are normal and happen nearly every year in the stock market.
  • Earlier this year we shifted some allocations in our discretionary accounts from growth stocks (which had a great run last year) to value stocks - and so far this year, value stocks have significantly outperformed growth stocks. (But, as you know, past performance is not a guarantee of future results- that’s for you compliance haha)
  • We recently added to our value position through companies focused in energy and we’re evaluating alternatives for some of our bond money, as bonds continue to struggle in this low interest rate environment. We remind all clients that even though bonds are very “blah” these days, we own some always because of risk management and downside protection during bad markets.
  • Our sources feel inflation is and will continue to creep in over this year and into the coming years with all of the government spending- we are monitoring closely, and this is another reason it’s SO important to own stocks.
  • Gold is suffering, primarily because of crypto currency becoming a competitor for investors who want money outside of traditional stocks.  We have never used gold as a long term investment in our models, this is more FYI. As a team, we continue to spend lots of time learning about this area (crypto) and will be available as a resource as it becomes more certain.


The weather is warming, summer is near, nearly half of U.S. adults are vaccinated, and the Biden’s tax plan is sounding like it’s not going to be as aggressive as threatened (potentially, I will get in to details later on this). All of that being said, our firm and team is all over this, and that’s why our clients have us on their side.  I just like to share the bigger picture thoughts for your knowledge and to see if it triggers any questions or concerns you may have for us.  Enjoy the summer and nicer weather, and come see us as you feel comfortable.

And I leave you with a couple great market quotes:

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves”

“it isn’t being in the next 20% market setback that scares me. It’s being out of the next 100% advance.”


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