Dear Valued Client:
Things that should have derailed the market in 2021: The Delta variant, the Omicron variant, new high in hospitalizations, a contested presidential election, high inflation, supply chain disruptions, a 12% stop of world trade with one ship, hundreds of forecasts calling for corrections that never happened.
The stock market turned in a solid performance in 2021. S&P 500 + 26.9%, Dow Jones (DJIA) + 18.7% and Nasdaq + 21.4%. Many of these on a one year basis outperformed active management strategies, but in the 2, 5, and 10 year lengths quality active management at an efficient cost has historically proven more value than passive strategies.
In supposition, the market is resilient and human ingenuity is a force that has driven the American market and country for almost 250 years. The market might always be ready for a correction but we believe it will be short lived. With the current environment staring down inflation and a forecasted rising interest rate, we don't want to be sitting in cash or heavier in bonds than we need to be.
We continue to expect volatility and drawbacks, but nothing we have seen can overshadow the continuing theme that overpowers and shakes off all these roadblocks. We invite you to continue strategically building wealth and to be wary of the herd of people who grow more uncomfortable with their environment. We advise you to continue being in the 1% of forward thinkers and advance the course of setting up long term goals and building for the future.
The economy is adapting to its surroundings rapidly and more than ever it is important to own the companies that produce these goods and services, as they remain floating on top of the money situation as it changes. We are grateful for the opportunity to support you in those goals.
We feel very honored when you send a friend or family member our way and entrust us to help them. We are always looking to be as efficient as possible and put our clients objectives as paramount in everything we do.
Michael Wyatt Holland, President of International Research Securities