Investment markets? You’ve likely heard that they continue to challenge us and we want to keep you informed.
Russia’s war on Ukraine has not waned. Reopening from the pandemic shutdown is still dealing with some supply chain snags and, more prominently in some areas, the struggle with rebuilding a productive workforce. As I write this, the NASDAQ (tech heavy index) is down nearly 22% from where it started this year. The Vanguard Balanced Indexed Fund (a proxy for a 60/40 stock/bond allocation) is down 11%. And in the first quarter of this year, the aggregate bond index is down almost 9% - just behind the Dow Jones Industrial Average. Bonds ended March with their worst single-quarter performance in almost four decades.
As you can see, it doesn't matter whether you're an aggressive investor, moderate, or conservative investor, the first quarter was difficult to make money.
Whenever we look at the markets, there will always be reasons not to invest at that time. This is why for so many people, except for day-traders, remaining invested and periodically reviewing and rebalancing accounts is the best thing to do. Actually, putting in new money - particularly through dollar cost averaging for larger sums - is a very smart way to take advantage of the situation and buy low.The stock market has historically rewarded patience in a diversified portfolio. We think it is not different this time.