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Markets Have Rewarded Discipline

Nathan Woods, CFP® AIF®
02.28.2022

Please let us begin this monthly communication by acknowledging our prayers for Ukraine and those impacted by the current state of global instability and uncertainty. We’re all somehow connected with this conflict, and our thoughts go out to those directly impacted.

Turmoil – both domestically and globally – has generally had a short-term effect on investment markets. The graph below shows some of the most significant events since 1970:

 ‘70s: oil embargos; S&P 500 Index down 43%
 ‘80s: US inflation rises to 13.5%; Dow Jones Index drops 23% in one day
 ‘90s: Iraq invades Kuwait; tax rates rise; concern over Asian currencies
 ‘00s: Y2K; 9/11; mortgage bubble; Great Recession
 ‘10s: Euro debt; US home prices
 ‘20s: COVID

 

By no means do we discount any of the above events. Whether you lived through all these events or only a few, history has shown markets reward discipline. We encourage everyone to periodically evaluate your accounts to ensure you are on-track for retirement.

RK is here to help – to listen; to discuss; to strategize; to make changes if needed. Please reach-out any time.

Growth of a US dollar – MSCI World Index (net dividends), 1970-2020
Source: MSCI

 

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