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.
In this context, high-quality U.S. stocks will bounce back once sentiment turns positive. In the meantime, the diversification of our portfolios including bonds, commodities, our overweight to utilities & health care stocks & defense contractors Lockheed Martin (LMT) & Raytheon Technologies (RTX) will buffer us on the way down.
Brendan Jr. and I are both working remotely so please call or email us if you want to discuss the current market's impact on your portfolio.