Special Market Update
As we watch events unfolding, our hearts go out to all that are being directly impacted by the Russian incursion into Ukraine. There is a lot going on today. Without going into too much political history, one of the issues that is front and center is the price Europe must now pay for allowing its energy reliance on Russia to reach such high levels. While the global community wants to impose sanctions on Russia to penalize them, it must do so delicately to avoid too large of a retaliation by Russia with energy sanctions it may impose on Europe. We will need to wait and see how long these sanctions on Russia may last. What is happening in Europe regarding oil and gas supplies and pricing, should be a wake-up call for any country.
We continue to monitor the state of the economy, the pace of inflation, and the coming actions of the Federal Reserve which is poised to begin raising short-term interest rates. Additionally, supply chain constraints will likely be with us for much of this year. Considering all the headwinds, our economy is performing well, although it is slowing, which was expected. Remember, we take a disciplined, objective approach to portfolio management while recognizing opportunities as they arise.
We are adjusting the portfolios in these changing conditions and will continue to do so over the coming weeks and months. Currently, market volatility may present opportunities to add to current equity positions or new positions in portfolios. In addition, we are continuing to modify fixed income to take advantage of the rising interest rate environment. We will get through this time period as we have others in the past, and we will be here for you if you have questions or comments. As always, we thank you for your trust.
Marc Henn, CFP