Bristlecone Blog

Financial markets got off to a rocky start in 2022 as inflationary pressures, tightening monetary policy, a Covid resurgence in China, and the outbreak of war in Ukraine led to a selloff in both stock and bond markets. The S&P 500 experienced its first negative quarter since the onset of the pandemic two years ago. Growth stocks were hit especially hard, with the Nasdaq 100 Index declining nearly 20% before recovering to finish the quarter at a 9% deficit. Even bonds were no haven, with the Barclays Aggregate Bond Index falling 6%--its worst quarterly return in almost 40 years (...)

The return of inflation worries is an unwelcome change for investors and makes the current environment challenging. While this development will likely lead to short-term volatility, it is in more difficult times that sticking with a well-thought-out, long-term plan is most important.

An overview of the 3rd quarter in investing, Facebook issues, and a look ahead to potential tax planning opportunities.

Equity markets continued their strong march upward in the second quarter, though leadership among sectors and asset classes shifted somewhat as investors grappled with conflicting data on the pace of economic recovery, as well as mixed signals on monetary policy from the Federal Reserve. Nevertheless, every asset class in client portfolios once again notched positive returns for the quarter (...)

In the wider world, hope for a return to normal, or an even better new normal, is steadily gathering steam. There is light at the end of this pandemic tunnel, but the journey has been long and hard.

2020 was a uniquely harrowing year. More than 1.7 million people have died in the COVID-19 pandemic, with trillions of dollars in economic damages around the world. Millions of people are out of work and struggling to pay their bills.