Market and Economic Updates


“Lord, what fools these mortals be!” –Puck, A Midsummer Night’s Dream As a young investment advisor, I got my first taste of what psychologist’s call, very appropriately, Fear Of Missing Out, (FOMO) with the Beanie Babies craze.  In 1995 a new and novel tool, the internet, became widely available to Americans.  This new technology, which encourages and fosters crowd behavior, no matter how irrational, created the first internet...

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This morning, Friday, June 10, 2022, the U.S. Bureau of Labor Statistics released May inflation data.  The Consumer Price Index showed a re-acceleration in inflation, disappointing investors, consumers, and others that were hoping price increases had peaked.  Prices climbed 8.6 percent in the year through May, a re-acceleration of inflation that makes it increasingly difficult for consumers to afford everyday purchases and poses a...

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By Lee Sherbakoff, CPA/PFS™, CFP®, RICP® From rampant inflation to ongoing supply chain issues and rising interest rates, it’s not a surprise that the majority of Americans fear the possibility of a recession in 2022. (1) But before panic sets in, remember we’ve had recessions before and we’ll have them again. What’s important is to take what we’ve learned from the market crash of 2007/2008 and apply these lessons to our current...

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“To reduce risk, it is necessary to avoid a portfolio whose securities are all highly correlated with each other.” Harry Markowitz – American economist Given the past 3 years of S&P 500 returns (31% in 2019, 18% in 2020, and 29% in 2021), many investors may be suffering from “recency bias.”  The term recency bias refers to the tendency to place too much emphasis on recent events.  For example, you may be inclined to chase last...

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“History had no lessons or rules to offer the student, it could only broaden his understanding and strengthen his critical judgments.” – Carl von Clausewitz, On War. After our last report on the market’s response to the Russian attack on the Ukraine, I had a number of clients reach out regarding my thoughts on the current military and geopolitical issues surrounding the invasion in the Ukraine.  I certainly appreciate clients...

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Dear Friends, This morning’s financial headlines were all about the effects of the Ukraine crisis on the U.S. stock markets. Yes, the markets have been spooked. But should you panic? NO. Consider this:The first U.S. laboratory-confirmed case of COVID-19 in the U.S. was on January 20, 2020, from samples taken in Washington State.  The S&P 500 (the largest 500 leading U.S. publicly traded companies) closed the next day at...

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