Volatile and Unpredictable

Hello from Sycamore,

As I write this post, the market is down ~10% from its recent high. The beginning of 2022 has been a bit volatile and unpredictable. When we read the news, we see headlines that stop us in our tracks: Inflation, War, Stagflation, Market Correction, Possible Recession.

Realistically, most news these days is created to grab our attention, pull us in. Reporting tends to be negative because negative news sells. It brings people back; it gets more people to click on the headlines. Media is a for-profit industry.

The volatility you are seeing is real. Inflation is normal. Market corrections are normal. Recessions are normal. We are not saying these feel good, or we need to be excited about them, but they are a normal course of business. The market has performed better than expected for the past 12 years – except for a flash recession in 2020. It is not surprising that as we enter the endemic phase of the pandemic and Russia invades Ukraine we might see some volatility.

Here are some facts:

  • Unemployment is down from its high of ~14.7% in 2020 and currently is at 3.8%.
  • Wages have been increasing more rapidly than prices. The average income for the bottom 50% of wage earners in the US were up over 11% in 2021.
  • In 1973 when Craig began in the industry the Dow Jones was just over 500 and today (3/9/22) it’s over 33,000.

From our research, the economy and corporate America appear to be in good shape. We still believe that the best course of action is to stay the course.

Thank you for your business and trust,

Sycamore Financial Group

***This article is distributed for general informational and educational purposes and is not intended to constitute legal, tax, accounting, or investment advice.***