Where should you go for a safe return in the 2022 markets?
May 17, 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.
Last week, stocks were down again by about 2% for the week with a lot of volatility, as you might expect. Our All-Weather score is in a pretty conservative position, now in moderate conservative, but it hasn't gone fully conservative yet. We're certainly watching and monitoring every single day! We still see many optimistic economic signs between now and the end of the year. So, while we're uncomfortable, we're not overly concerned.
I did want to share with you today something beyond the stock market. Here is a chart that I think is somewhat surprising:
This chart shows S&P 500 against the Aggregate Bond Index. As you can see, the lines look fairly similar, and we wouldn't expect that, right? Normally, when the market is going down, we expect bonds to give us some ballast or comfort. However, you can see this year that bonds are unfortunately down with the market. This means that we need another strategy for managing risk. I think it's very important these days to have a process for managing risk and making adjustments to current conditions, or even having a strategy that protects against the downside in a more guaranteed fashion. We would love to discuss all of this with you, so do not hesitate to get in touch with us.
If you have any other questions about this topic, 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.