Table of Contents
Investors rode a rollercoaster of emotions as rising hostilities at the Russian-Ukrainian border sent stocks sharply lower before a powerful late-week rally erased early losses. The Dow Jones Industrial Average was flat (-0.06%), while the Standard & Poor’s 500 edged higher by 0.82%. The Nasdaq Composite index gained 1.08% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost an eye-catching 5.72%.1,2,3
The build-up to Russia’s eventual invasion of Ukraine triggered elevated market volatility, resulting in broad-based selling that sent the S&P 500 into correction territory as the holiday-shortened week of trading began.4
The sell-off culminated on Thursday morning following the overnight incursion of Russian troops into Ukrainian territory, though markets staged a powerful late-day recovery that coincided with President Biden’s announcing fresh sanctions against Russia. The afternoon rebound was remarkable, as the S&P 500 ended 1.5% higher after being down more than 2.6%, while the Nasdaq Composite closed 3.3% higher after dropping nearly 3.5% intraday. Thursday afternoon’s momentum continued into Friday as stocks rallied to end the week in positive territory.5
Setting aside the more important aspects of the human cost and damage to world order, Russia’s invasion of Ukraine introduced an acute layer of uncertainty into many layers of the financial markets. The immediate repercussion was the impact on global economic recovery due to rising energy prices, which reduce consumers’ discretionary spending and saddle businesses with higher costs.
The inflationary impact of higher energy and other prices, along with the prospect of decelerating economic growth, also complicates the Fed’s strategy to guide interest rates higher. Already, the probability of a 50 basis point interest rate hike at the Fed’s March 2022 meeting seems less likely than it was just a week ago. Finally, Russia’s actions have raised new concerns over second-order effects that could further unsettle markets, such as a new round of supply-chain disruptions.
This Week: Key Economic Data
Tuesday: ISM (Institute for Supply Management) Manufacturing Index.
Wednesday: ADP (Automated Data Processing) Employment Report.
Thursday: Factory Orders. Jobless Claims. ISM (Institute for Supply Management) Services Index.
Friday: Employment Situation.
Source: Econoday, February 25, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Monday: Lucid Group, Inc. (LCID), Zoom Video Communications, Inc. (ZM).
Tuesday: Salesforce.com, Inc. (CRM), Target Corporation (TGT), Ross Stores, Inc. (ROST).
Wednesday: Dollar Tree, Inc. (DLTR), Snowflake, Inc. (SNOW).
Thursday: Broadcom, Inc. (AVGO), Costco Wholesale Corporation (COST), Best Buy Co., Inc. (BBY), Marvell Technology, Inc. (MRVL), The Kroger Company (KR).
Source: Zacks, February 25, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Get Your Financial Planning in Shape!
Join us at our upcoming events.
We can help you save, invest and reach your financial goals!
Thank you to everyone who attended our Feb. 22nd Tax Planning Lunch & Learn Event!
We hope that you learned new information & found it helpful!
We’ll be sending out updates soon for our next Lunch & Learn Event in Quarter 2!
Does have “Lazy Money” not earning anything?
You know that feeling of finding money in your couch cushions or your pants pocket? That instant satisfaction and surprise of feeling just a bit richer?
Well, prepare yourself for some good news – most of us have some excess cash that deserves some TLC. Perhaps it’s excess cash in the bank that’s not earning much of anything, an old 401(k) you keep meaning to check in on, or money you inherited that you haven’t gotten around to figuring out what to do with it.
Our wealth management team can help you review your Fiscal House to see where it makes the most sense to get this “lazy money” off the couch and back to work! All we need is 15-minutes (or less) of your time to share our ideas with you.
Click here to see our calendar and connect with us for a 15-minute call to discuss your lazy money strategy.
Does Your Portfolio Fit Your Retirement Lifestyle?
Most portfolios are constructed based on an individual’s investment objective, risk tolerance, and time horizon. However, as a retiree, how you choose to live in retirement may be an additional factor to consider when building your portfolio.
Click here to see our calendar and connect with us to discuss your retirement readiness!
Are You Paying Too Much in Taxes in Retirement?
For most of your working life, you’ve been in an accumulation phase — gathering and growing assets to be used to support you in your later years.
During retirement, however, you move to a different mindset as you transition into a distribution phase. Planning for the distribution phase includes a shift in perspective as you work toward preserving the assets you spent so many years building.
The key to preserving your assets is to develop a smart distribution strategy, one that accounts for many things — including the taxes you’ll owe in retirement. At SFG, we do more than just investment planning, our Stuart Retirement Review® process is comprehensive and tax planning is one of the 5-key areas we plan for!
Click here to see our calendar and connect with us for a 15-minute call with our team.
Let us help you develop your plan. Schedule to connect with us using one of the links above or give us a call at 301-345-1635.
“Who are wise in love, love most, say least.”
–Alfred, Lord Tennyson
Have You Created Your IRS Online Account?
The IRS makes it easy to create an online account where you can view all kinds of account information, such as:
- Your payoff amount
- The balance if you owe taxes
- Your payment history
- Key information from your most current tax return
- Payment plan details if you have one
- Select IRS notices
- Economic payments (if you have any)
- Your address on file with the IRS
You can even make online payments and get a digital copy of the most recent transcript of your tax return.
* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov6
A “Berry” Important Superfood
Not only are blueberries delicious, but they are also a powerful superfood that has many potential health benefits. They are low in calories, can be added to countless dishes, and are the perfect easy snack. Here are some benefits of blueberries, according to Healthline:
- They are high in fiber, Vitamin C, Vitamin K, and Manganese (all important nutrients)
- They are high in antioxidants
- They may help lower blood pressure, according to one study by PubMed Central
- They may help maintain brain function and improve memory based on their antioxidant levels, according to a study by the National Institute of Health
- They may reduce muscle damage after exercise and improve inflammation
Tip adapted from Healthline7
You have a can of soda in your hand and someone tells you to drink the bottom half of it first. How can you do that?
Last week’s riddle: You go in through one hole, you come out through three holes. Once you’re inside you’re ready to go outside, but once you’re outside you’re still inside. What is it? Answer: A Sweater.
Share the Wealth of Knowledge. We love being introduced!
- The Wall Street Journal, February 25, 2022
- The Wall Street Journal, February 25, 2022
- The Wall Street Journal, February 25, 2022
- The Wall Street Journal, February 22, 2022
- The Wall Street Journal, February 24, 2022
- IRS.gov, July 26, 2021
- Healthline.com, September 30, 2021
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with Stuart Financial Group, J.W. Cole Advisors, Inc., nor state or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2021 FMG Suite.