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Market commentators are filling the airwaves with talk of interest Rate increases, Recession risk & Russia. The three RRR's you might say. Yes, these talking points are scary if you are a short-term short-term stock trader or have your portfolio run by computer-based momentum models. We prefer to keep our eye on the long-term earnings growth & the financial stability of the high-quality companies we invest in.

It's tough to tell with any level of certainty when the market hits bottom and reverses course to the upside. With that in mind let's review the damage with YTD returns; S&P 500 Stock Index -13%, Nasdaq -21.2%, Small Cap -14.3%.

Inflation is everywhere you look these days - energy, food, housing, travel, cars, etc. The Federal Reserve has a challenge on its hands, getting 5%+ inflation under control. Over the next 6 months +/- we will know how successful they are.

The overnight events in Ukraine are very unsettling. From an investment perspective, we need to put in perspective the Russian attacks on an intermediate (2-3 years) & long-term (5+ years) effect on the U.S. economy. With low-interest rates even after the anticipated Fed rate increases and a very cash-heavy consumer that will create trend 3% +/- real GDP growth in 2022 & 2023. This leads to solid (7%+) profit growth for corporate America.