“The Joy of brightening other lives, bearing each others’ burdens, easing each other’s loads and supplanting empty hearts and lives with generous gifts becomes for us the magic of the holidays.” –W. C. Jones
As we come to the end of another year, I would like to express my gratitude for the privilege of walking with you on your personal journey, pursuing lifelong financial independence.
Since there are no facts about the future, the most important thing I can do is bring context and confidence as we steward your retirement resources in an ever-changing world.
Here are a few notable points about the last two years in the bigger scheme of things:
- From the last major market low in March 2009 to the most recent market high of January 2022, the S&P 500’s average annual compound return has been more than 17%
- Historically, stocks and bonds have positive annual returns far more often than not…
- After the greatest increase in inflation since the 1970s, the Federal Reserve hiked interest rates more sharply than any time in 110 years
- The result was a bear market in stocks AND bonds, something that we have not seen to this degree since 1937
- Various domestic and global problems, many still unresolved
- Where does that leave the S&P 500 here on December 4, 2023, after these significant challenges?
- 4% away from the January 2022 all-time high-
“The stock market is a device for transferring money from the impatient to the patient.”- Warren Buffett
As another encouraging reminder, even as the values of stocks and bonds fluctuate or stall during periods of uncertainty, our accounts continue to be income-generating machines.
Cash dividends went up 11% in 2022, and are expected to exceed that in 2023. Bonds continue to pay the expected interest and principal.
I look forward to looking with you at the amount of income that your account produced and reinvested when we have our year-end reviews in January.
“Every time, in my roughly half century of investing, I became convinced that I knew something the market didn’t, it wasn’t the market that turned out to be wrong.”- Nick Murray
I think we can all relate to that!
My greatest wish is that your experiences build resilience like a muscle, and the resolve to confidently stay on track for lifelong financial success.
Best Wishes for a Happy Holiday Season! - Rachel Kuss
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Securities and Retirement Plan Consulting Program services offered through LPL Financial, a
Registered Investment Advisor. Member FINRA/SIPC. Investment Advice offered through Western Wealth Management LLC, a Registered Investment Advisor. LPL Financial, Kennebec Wealth Management LLC and Western Wealth Management LLC are separate entities.