The headline in the Wall Street Journal after market close yesterday (June 30th)- ‘S&P 500 Posts Worst First Half of Year Since 1970’, followed by a sub-title, ‘Stocks fell to wrap up a grueling second quarter’.  The tone of the headline, along with the timing itself, marking the end of the first-half of the year, makes for a good time to follow-up on the recent Leadership Matrix post giving an update on the positioning of FourStar managed portfolios- “We have maximum protection levels now”.

Yes, the FourStar portfolios still have maximum protection levels now.  And no, the sky is not falling!

Let’s look at a couple of historical facts- 1) When the S&P 500 plunged 21% in the first half of 1970, it promptly reversed those losses to gain 26.5% in the second half; 2) Much of the current market volatility is centered on inflation that is proving anything but transitory, at least in the way the Fed believed it to be.  To expand on inflation concerns, supply chain constraints that the Fed expected to ease still persist, while demand has remained high and continues to overwhelm the ability of shippers and retailers to get products to market.  The war in Ukraine has sharply driven up food and energy prices, while consumer confidence is down.  I bring this information up not to predict the market, but to emphasize that this is the time to plan.

As I’ve mentioned before- going through market conditions such as these without a well-organized plan will often hurt investors more than the actual markets will.  Thinking this issue through now and developing a clear rational plan will help keep bad decisions at bay, like selling at the bottom and making panic moves.  We have a plan at FourStar that helps keep our clients’ goals within sight!  Let me know if you or anyone you know needs assistance in developing a financial plan.

Moving beyond plans- we are heading into the weekend of the 4th of July.  Knowing that FourStar has an office in Providence, Rhode Island, here is some information on the oldest Fourth of July celebration in the nation, which has taken place in Bristol, RI since 1785.  You read that right- the Town of Bristol, RI (about one-half hour south of the Rhode Island capital of Providence and fifteen minutes north of the colonial-era seaport city of Newport, RI) has been celebrating the Fourth of July since 1785, a mere nine years after the signing of the Declaration of Independence.  Enjoy the holiday weekend and here’s hoping you are able to be with family and friends for some early summer fun!

~ Brian Kasal- The Leadership Matrix

Click here- Bristol Fourth of July Celebration

Are you ready to start a conversation or get a second opinion on the financial or philanthropic goals for you, your family, or your business?  Click here to connect with the team at FourStar!

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