Covering 2021's market performance and what is on deck for 2022
January 4, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Darrin Cohen, and I am the CEO of Wealth E&P. Welcome to 2022! We hope you all had a wonderful holiday.
I’d like to recap last year for you, as well as give you a little snippet into what we see for 2022 in the financial markets.
If we take a look at last year, it is pretty interesting to see, actually. The markets did phenomenally, but there was a bit of an anomaly; the S&P was up almost 30%, while the NASDAQ and the DOW were up around 21-22%. Normally, we don’t see that much dispersion with the S&P up so much more. Our managed growth portfolio was up similarly to the S&P 500, at about 30%.
Here is another anomaly – last year, because the S&P was driven by just a select few stocks, it did well. However, diversified portfolios did not do quite as well. An S&P aggressive allocation was up about 15%, a moderate portfolio up about 6-7%, and an S&P conservative allocation was up about 5%. Diversification didn’t help last year, as you’d expect most portfolios to do well. Most did not do quite as well as the S&P 500.
As far as this year is concerned, we still expect a good year. Our indicators are pointing to positive numbers for the next 6 months or so. Beyond that, we will continue to update you. Right now we are continuing to stay aggressive, and taking advantage of the opportunities while they present themselves.
If you have any other questions on this or anything else, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our Market Minute next week!
At Wealth Enhancement & Preservation, we are here to serve as your financial advisor and source of support in the Alpharetta, GA, Cartersville, GA, and Charleston, SC areas. Our advisors are dedicated to simplifying the complexities of the financial world and as your advocate, we strive to learn about your most valued goals and dreams. From individual investors to entrepreneurs, our services are designed for your success.