812-853-0878  |  800-355-9624

April 1, 2022

by | Apr 1, 2022 | Quarterly Letters

Dear Client : Returns for the major stock indices and the current bond and money market yields are as follows: IndexYTD 2022Dow Jones Industrial Average   -4.56%S&P 500   -4.94% Fixed Income Yields        1 year5 year10 year30 yearMunicipals1.54%2.03%2.23%2.60%US Treasuries1.60%2.46%2.34%2.45% Fidelity Government Cash Reserves Money Market Fund0.01% The first quarter of 2022 has been distressing.  The news of Russia’s invasion of Ukraine has captured the hearts and minds of so many worldwide as the daily headlines of chaos and suffering are difficult to see, let alone to bear.  From a global pandemic to an unprovoked war by a nation with nuclear weapons, investors have had much to consider.  Anxiety, unease, and uncertainty have felt commonplace in recent history.  As investors, we have to again try to assess the risks to our investment strategies amid the fears and uncertainties.  Despite the volatility, the markets have been resilient as they have rallied back significantly for the year.  Though we cannot know how the invasion will play out, we can reflect on history, study the investment implications and alternatives, and attempt to mitigate the risks as we understand them.  Russia’s invasion of Ukraine on February 24th was a surprise to some, but not all.  The troops and drumbeat to war had been building along the Ukrainian border for months.  On the day of the invasion, the Dow Jones Industrial Average dropped 859 points at its intraday low, only to close up 92 points, an intraday reversal of nearly 1,000 points.  To date, both the market low (down 11% or 4,000 points) and peak fear were during the first day of the invasion.  The markets again...