Bear Market Over, New Bull Market Underway

How many bear markets have we survived together? Answer: All of them. The number depends on how long you have been a client.  Each one is torturous, but gives us a chance to take a hard look at our investment holdings and make appropriate adjustments. Historically, the equity markets have always recovered to reach new record highs.

Recession talk continues ad nauseam, but is tempered now by lessening inflation and strong consumer confidence. The Covid pandemic and easy money for too many years has caused many dislocations in the economy which will reverberate for some time. In addition, the onset of Artificial Intelligence and geopolitical tensions will make long term investment decisions more difficult. Trust that we are working every day to provide a safe and fair return on your assets. 

The post-Covid recovery in China has not been robust. On the one hand, this has helped to lower global inflation. On the other hand, it is not helping global growth. Germany officially entered a recession as they recently reported their second straight quarter of negative growth. To make matters worse, they are still fighting inflation and plan to continue raising their interest rate to combat prices. The United States continues to be the beacon of economic strength.

Congress has once again liberalized the rules for when you need to start taking your Required Minimum Distributions (RMD) from your retirement account. If you were not required to take your RMD in 2022, you do not need to take it until April 1st of the year following the year that you turn 73. For those who turn 73 soon, we will contact you to discuss when to start taking your RMD.

A big bonus is now available on your checking and savings accounts for the first time in years. If you are receiving little or no interest on significant balances, we implore you to move those funds to any number of alternatives which pay around 5% and are extremely safe. Call us for advice.

Very Truly Yours,

Michael F Cantlon
Thomas E Guyett
Robert Gephart