Broker Check

February Newsletter 2022


 

 

February 2, 2022


 

“Buy Low, Sell High, Stay Invested…”

To our clients;

We reported last month record returns for both the equity and income categories of our managed portfolio.  Well, January of 2022 produced the lowest monthly broad market declines since the Pandemic began in March 2020.  Investors moved from “Greed” to “Fear” as rising interest rates are expected to slow the growth of the high-flying tech and small-cap companies. 

In the past ten years Intelligent Investment Management, LLP has produced meaningful results during tumultuous periods that have included multiple debt ceiling crises, quantitative easing, rise of social media, big tech monopolies, oil price collapse, global interest rate pressures, the advent of Cryptocurrency, a yield curve inversion, trade wars, Brexit, and a pandemic.  Without minimizing the current market concerns over “worst-case scenarios”, we believe that our long-term strategy of focusing on solid fundamentals will continue the long-term investment results that our clients can rely on.

For perspective, see the Portfolio Summary and Active Management Graph below for how our firm has actively managed client portfolios over the last ten years. As of January 31, 2022, our aggregate managed portfolio was equally invested between the broad equity and broad income categories:
  

 

 Active Management Results:  Last Five Years

Economists surveyed on their economic predictions for 2022 have made predictions that range from negative to positive.   Just yesterday, one member of the Fed announced that first quarter GDP will be as low as 0.1 percent, although some economists believe that full year 2022 GDP growth will be in the three percent range.  We do expect 2022 to be volatile as the securities markets react to the various changing conditions over the year.

Despite the market’s tendency to have an initial knee jerk reaction to interest rate hikes, rising interest rates may not be the enemy of the stock market as those rising rates historically do not correlate with equity markets falling over a sustained period.

With the January market declines comes an opportunity for investors to contribute to their Roth IRA accounts and/or make annual deposits to their regular retirement accounts.  Likewise, clients that may benefit from Roth IRA conversions should consult with their tax advisor and talk to us soon about those opportunities.

Please look for our required annual notices that cover our Privacy Policy and our Firm Brochure that will be coming to you in a separate email communication.  We have been sending clients that receive electronic performance reviews email invitations to sign up for

our new vault access.  Please look for this invitation in your email, as the vault will contain your most recent and future quarterly reports and annual Form 1099s.  If you have questions on how to do this, please contact Laura for assistance.

We recently remodeled and improved our office space to accommodate two future staff members.  Everyone in our office wishes you a happy and safe start to 2022 as we begin what will be a very active year for our firm.  We would like to thank all our clients for their trust in us over the tremendously successful first twenty-five years. 

 

Sincerely,

Intelligent Investment Management, LLP