Weekly Market Recap – 01/03

60 Second Market Review

What happened?

  • 2021 ended with one of the best stock performances in years, ending close to record highs. Should you still get in now? Or is it too late?

Things to be aware of…

  • January is for getting organized – and we’re going to hammer financial organization this month.
  • Want to double your wealth? Forbes says those with a plan have double the wealth than those without one. Meet with us today.

The Details

What happened? 

2021 ended with one of the best stock performances in years, ending close to record highs. Should you still get in now? Or is it too late?

Source: Ycharts


Actionable Items for You:

  • 2021 was a banner year for stocks. The S&P 500 gained 26.9%, one of it’s best years in a while. 
  • Should you invest now? Short answer: yes, especially long-term.

Now that the markets have closed off 2021, how did we end up? Pretty, pretty good. The S&P 500 gained 26.9%, the Nasdaq gained 21.4%, and the Dow Jones finished 18.7% higher. That means if you were invested, you probably had a pretty good return.

And that leaves us with a couple of questions. If you didn’t invest, is it too late? And if you did, is it time to get out? 

Let’s start with the first question. It is never too late. Just because the stock market does really good one year, doesn’t mean it won’t continue to do well. While we shouldn’t be setting expectations as high as 27% every year, the stock market has compounded annually around 8-10% on average, depending on your start date, for the last 100 years. So maybe temper your expectations, but you can comfortably invest even close to the peak in the stock market, as long as you have the time horizon of 10 to 20 years from now. 

It’s simple: the stock market (aka the S&P 500) is one of the best ways to compound your wealth over time. 

Source: Ycharts

The second question, if you hit a good year, is it time to get out?

Short answer: no. Long answer? It will depend on your risk tolerance. This will sound contradictory to above, but it’s actually all part of the portfolio construction process. When you decide what to invest in, you should be getting a properly diversified portfolio based on how comfortable you are with volatility and losses, and also your ability to take volatility and loss. So if you have a long time horizon, stable and high earnings, and can handle the risk, you probably don’t need to make a lot of changes.

But, if you are a balanced investor that can’t or won’t take on the full risk of the stock markets, you might want to rebalance your portfolio. The reason is your risky assets probably outgrew your less-risky assets, and it might have put your balance out of whack. And that might mean selling some stocks. 

Remember – that’s only if your portfolio is no longer properly aligned to your goals and objectives, and your willingness and ability to take on risk. There’s an old saying in the stock market: “Pigs get fat, and hogs get slaughtered”. Lesson: Take opportunities to rebalance when times are good, even if you miss out on some upside in the long run. 

We want to help you and build our community, and if you’re going to get started, feel free to set up a time to chat.

Things to be aware of…

January is for getting organized – and we’re going to hammer financial organization this month.

Actionable Items for You:

  • The first step to your 2022 goal of getting your finances? We have you covered – get all of your documents together. 
  • We’re going to tackle getting organized this month from a financial perspective. Some topics for the rest of the month are below. 

2022 is here! Welcome to the future. 

Is one of your goals to get your finances in order? If it’s something you’ve had on the back burner for some time and you want to take the plunge, we’re here to help. It can seem overwhelming to get started – but it doesn’t have to be!

Start by allocating some time each week to getting organized. This can be an hour each Wednesday night, or even a couple of hours before game time on Sunday. Make sure you commit to some time each week and don’t try to tackle it all at once – that’s how you lose momentum. 

Next, you can gather all your statements and log into all of your accounts (bear with us – this might be the hardest part in getting organized). You want to gather info for all of your accounts that have any monetary value or info related to your finances, including life insurance, wills, and trusts. Here’s a checklist:

Look for your Assets:

  • Bank accounts, investments, retirement accounts, and real estate

Find out your Liabilities:

  • Credit cards, student loans, mortgages, and any other debts

Write down your Income:

  • Salary, gifts, investment income, business income, etc.

Track your Expenses:

  • Credit card and debit card statements, bank statements, or any other source of spending

If you want a comprehensive list of important financial documents, reach out to us at Freeman Capital today – we can send a list over to you. 

In addition, our secure platform allows you to link all of your financial accounts and hold your financial documents in a secure vault if you want to work with us.

As a start, here’s a PDF link to Right Capital – One Stop Access

And watch this video to help stay on top of your financial life. 

And voila – all of your documents have now been gathered. For the rest of the month, we’re going to cover:

Determine your Financial Goals
Tracking your spending 
Consolidate and Automate 

Do you want some help with getting financially organized? We’re here to help. Meet with us today.

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