Dear Client,
The last several emails have covered many concerns, strategies, and ideas.
It would be prudent for us to meet and go over how the war in Europe, a slowing economy, and Inflation will affect your investments in the future. Our financial planning software can cover the following issues we face in 2022 and 2023:
Inflation and your budget: how will it affect your retirement?
Social security increases in 2023; what can you expect? Tax increase discussions; it's a no-brainer; this is coming!
Global risks and your money.
Income and capital preservation techniques.
Inflation portfolio modeling ideas (refer to my last email, titled Inflation Might Cool Off, sent April 13th) Despite the many headwinds we face as investors, progress is still achievable.
Below are five very bullish signs that no one is talking about:
Consumer sentiment is the worst since 1979 (and matched the low in 2008) (3)
The AAII (American Association of Individual Investors) Individual bullish sentiment index is the lowest since 1993 (4)
When the AAII bullish sentiment index has been below 20% historically since 1987, the average 12-month return is 19.8% for the S&P 500 index (5)
The 10-year treasury index is the most oversold ever! Beating the 1994 bond taper. (6)
People are the most pessimistic about the economy since 2008(1)
Being a contrarian investor during such uncertainty can have excellent results.
Please get in touch with me if you have any questions or want more information on updating a financial plan.
Regards, Chris
Christopher R. Lakian
Sources:
1) AAII.com/survey 2) Factset terminal 3) University of Michigan: consumer sentiment, FRED online. 4) AAII.com/survey 5) LPL research & AAII.com/survey 6) Stockcharts.com/historical data since 1991
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