Dear Clients and Friends,

Despite solid stock market gains over the past 18 months, we have had two unexpected events that negatively affected the financial markets. As with past negative market disruptions, we see the current environment to be challenging, and we are reminded of the importance of our twofold objective of helping you both “make money and preserve money.” We expect “hills and valleys” in the progression of the financial markets over time. We try to avoid “roller coaster rides” knowing it is metaphorically more difficult to climb out of a canyon than drive up a hill on a road.

Going forward, we continue to see six pillars supporting U.S. stock and bond values and providing a platform for the potential for future advances. 

First, the interest rate environment appears stable.

Second, business confidence is being reinforced by a reduction in what we consider to be onerous government regulation.

Third, the development of alternative intelligence (AI) is creating operating efficiencies that are likely to enhance corporate profitability on an ongoing basis.

Fourth, the tax code and structure appear to be set for the next few years which encourages long-term business and financial planning.

Fifth, in times of international turmoil, the United States and our financial markets are more likely to be regarded as a landing place for international investors.

Sixth, due in large part to energy self-sufficiency, we believe the likelihood of supply bottle necks and shortages in the U.S. should be low.

There are many aspects of what we do as financial advisors. One that readily comes to mind is risk management. Diversification provides no guarantees of risk mitigation and portfolio performance and does not ensure a profit or protect against loss. However, we continue to see benefit from our focus on diversification by investment sector, in our investment recommendations, and on asset value and cash flow.

We hope you have a great spring and summer.