[youtube]https://youtu.be/63szpSA8rKM[/youtube]
So far, 2022 has been something of a perfect storm for investors. Stock prices have sunk into a bear market. Bond values have dropped with rising interest rates. As the Federal Reserve grapples with the highest inflation in four decades, it risks tipping the U.S. economy into a global recession.
Still, Landaas & Company advisors recommend calm, continued balance and long-term perspective.
“This has been a very tough stretch, not just this year, but coming through COVID,” Kyle Tetting says. “And yet, here we are looking at three-year numbers that are quite exceptional for many balanced portfolios. I think sometimes we miss that, looking at just the pain that we’ve dealt with really from the start of this year.”
In the 2022 Investment Outlook Seminar, a Money Talk Video, Kyle and Bob Landaas explain the circumstances that brought about the current conditions, what investors might expect ahead and how they should be managing their wealth in the meantime.
“Folks need to keep their faith and avoid doing something that, after the markets recover, they’re going to regret,” Bob says.
Throughout their conversation, Bob and Kyle discuss how much of what investors are facing was to be expected. Understanding that, they say, offers comfort and confidence to withstand current disruptions.
“The stock market is doing what it’s supposed to do, which is to reprice itself when interest rates go up,” Bob says. “In the middle of a bear market, it’s really important to make sure you look at your balanced portfolio knowing that this is why you own bonds: So that you don’t have to sell your stocks or stock funds in a bear market to support yourself.”
Given all that has happened so far and why, Kyle expresses guarded optimism for the outlook for long-term investors.
“I think as we move through fall into winter, and especially into spring of next year,” Kyle says, “there are a lot of reasons to think the very problems we’re talking about right now either become less of a problem or even, in some cases, are moving in the other direction.”
In addition to Kyle’s far-ranging overview with Bob, Kyle talks with other colleagues as part of the 2022 Investment Outlook Seminar, including:
- Steve Giles on navigating bear markets
- Dave Sandstrom on what investors should know about the Fed
- Kendall Bauer on upsides of rising interest rates
- Paige Radke on the shifting values of value and growth stocks
The seminar video was recorded and edited by Jason Scuglik.
Click the image above or here to view the seminar.
(initially posted Sept. 30, 2022)
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