MWM Weekly Update

The Week of February 28th, 2022

MWM Weekly Update

The Week of February 28th, 2022

Greetings Everyone,

It’s been a roller coaster for the past few weeks as we all watched the news on the Russian invasion of Ukraine. This isn’t a new war but one that started in February of 2014, with the invasion of the Crimean Peninsula. This current invasion is a continuation of the Russo-Ukrainian conflict. It may be helpful to note that the stock market in 2014 ended the year nicely up despite all the fears of the war.

By now you will have received email notifications of market commentary regarding the geo-political and economic issues. We will continue to advise you on strategy and perspective as events evolve and investors weigh in.

These events remind me so much of my training as a financial advisor and my more than four decades of experience working with clients and their portfolios. Quotes from Warren Buffet are familiar, “A disciplined investor is a wealthy investor because they have learned that market fluctuations are normal, and that patience pays off.” Buffett touches on the psychological nerve of most investment failures. We humans are by nature not very rational. Many will be tempted to sell out their investments when they think the market is working against them.

It is the well-tempered investor that learns to be patient, not watch the market continuously. Buffet purposes that to build more wealth it does not require you be necessarily smarter than another investor, but rather that you become more disciplined with your reaction toward the irrationality of the market. “You don’t need to be a rocket scientist,” goes a similar Buffett quote. “Investing is not a game where the guy with he 160 IQ beats the guy with 130 IQ.”

As Mercer Advisors and your McGee team reach out with current information, let us know if there is anything you need to help understand our processes and your accounts with us. Remember, we expect the markets will be volatile for a while until economic and political information is reliable.

Cyber Security
With all the news coverage of cyber-attacks form Russia, you might want to know what Mercer Advisors is doing to protect you. Click here for Mercer Advisors Security Measures

2022 Women of Influence
For several years McGee Wealth Management has sponsored the Portland Business Journal's "Women of Influence" event and served to support women in our community. We were delighted that Mercer Advisors downtown Portland Office is joining our team in this year’s sponsorship. Mercer Advisors is a strong proponent of developing investment strategies and programs designed to address the concerns and needs of women.

This year I’ve been asked to present an award to one of the 25 winners. The program is held at the Convention Center and is designed to honor the region’s most influential businesswomen. Candidates come from every industry and profession; women who’ve made a difference in their communities, blazed a trail for the rest of us and leave a mark on the Pacific Northwest community.

Ukrainian Crisis - Local Response
On Saturday, Laurie Macielinski, her husband Damien, and their daughter Hannah, attended the Support Ukraine rally in downtown Portland. The invasion of Ukraine hits close to home for the Macielinski family. Damien's grandparents fled Ukraine during WWII and still have relatives in Lviv. His grandmother, Maria, turns 100 in a couple of weeks and the family will gather together in person and via Zoom to celebrate.

Ukrainian-Americans are deeply concerned for their homeland and people. It is empowering to see the global reaction and coming together to protest the war and find ways to help Ukrainian refugees as well as those who are still in Ukraine.Here are some ways you can help:
Razom for Ukraine
Revived Soldiers Ukraine
Medical Teams International
World Central Kitchen
Save the Children Ukraine Crisis Relief Fund

Thank you - Дякую

Celebrating Theresa Bedard, Our Special Team Member

Theresa has a special birthday recently and we wanted to spotlight her for you. She’s been an invaluable member of your advisory team and currently works remotely from Boston, Massachusetts.

Theresa Bedard grew up in Danvers, Massachusetts which was formerly known as Salem Village where the witchcraft trials began in 1692. She graduated from Seton Hall University in NJ and lived in Brooklyn and Boston before beginning her journey to the west.

In 2006, she moved to Oregon and began working for McGee Wealth Management, now Mercer Advisors running the portfolio performance software. Now 16 years later, she is Manager of Trading & Investments overseeing account activity including cash flows, trading, and investment research.

Last year after her mother’s cancer diagnosis she was able to move back to Boston and continue working remotely to be able to spend time with her family. She is enjoying the lobster, roast beef, fluffer-nutter sandwiches, and iced coffee in the winter (all the classic North Shore staples)!

Theresa has a dog and cat, Yogi and Juju who also went on the cross-country drive to move back east. Yogi got to experience first-hand the historic storm last month when Boston tied the record for the biggest single-day snowfall with 23.6 inches! To celebrate her birthday, she is traveling to NYC with some college friends.

Personal

Our son, Steve recently suggested we buy a condo in Kona Hawaii together. This March Linette Dobbins and I will join him for some relaxing vacation time. Steve has lived for many years in northern Idaho and has gone to Kona almost every winter to get out of the cold and into the sunshine. Buying a vacation place in the islands has been his dream and we’re so happy to share it with him.

May your days be filled with sunshine,


Judith McGee, L.H.D., CFP®, ChFC®
Executive Vice President and Senior Lead Advisor

In the Markets

LAST WEEK
  • Stocks closed mostly higher last week, despite a tumultuous week with the Russian invasion of Ukraine. Of the major benchmark indexes, only the Dow and the Global Dow closed the week in the red. The Russell 2000, the Nasdaq, and the S&P 500 each posted solid gains. While the world reacted to the conflict in Eastern Europe, traders sought domestic stocks, driving values higher. Apparently, some investors may be viewing the Russia-Ukraine conflict as a reason to believe the Federal Reserve may not be quite so quick to jack up interest rates. However, with prices continuing to rise even before the turmoil in Europe, inflationary pressures are likely to accelerate due to disruptions caused by the war, which would seem to increase the likelihood of a more aggressive stance by the Fed. Much is still to be determined in the weeks ahead.
  • Growing tensions between Russia and Ukraine pulled stocks lower last Tuesday to start the holiday-shortened week. Both the Russell 2000 and the Dow closed down 1.4%, while the Nasdaq lost 1.2%. The S&P 500 and the Global Dow each fell 1.0%. Ten-year Treasury yields rose, while the dollar was flat. Crude oil prices increased to $92.27 per barrel. Earlier on Tuesday, NATO Secretary-General Jens Stoltenberg said that Russia's recognition of two separatist regions in Ukraine could be viewed as a prelude to a large-scale assault. In response, several Western leaders unveiled a series of sanctions targeting Russian banks and financial firms.
  • As Russia moved closer to a full-scale invasion of Ukraine last Wednesday, tensions mounted globally. Sanctions were either threatened or imposed by the United States and other Western countries, prompting retaliatory rhetoric from Russia. Then, late Wednesday, as anticipated, Russia launched a military attack on Ukraine. Unsurprisingly, stocks extended losses. The Nasdaq shed 2.6% as technology stocks sold off amid fears of Russian cyberattacks. The S&P 500 fell 1.8%, falling deeper into correction territory. The Russell 2000 lost 1.8%, the Dow dropped 1.4%, and the Global Dow slid 0.9%. Yields on 10-year Treasuries rose nearly 3 basis points to 1.97%. The dollar was little changed. Crude oil prices surged, nearing $100.00 per barrel. Gold prices reached $1,910.80 per troy ounce, the highest value in more than a year.
  • Equities rebounded last Thursday following President Biden's announcement of new sanctions against Russia after its full-scale invasion of Ukraine. Tech stocks, which had been hard-hit, led the surge, pulling the Nasdaq up 3.3%. The S&P 500 advanced 1.5%, while the Dow gained 0.3%. The small caps of the Russell 2000 advanced 2.7%. The Global Dow fell 2.3%. Along with technology, communication services and consumer discretionary moved higher. Ten-year Treasury yields declined, closing the day at 1.96%. Crude oil prices and the dollar rose. Not unexpectedly, the Cboe Volatility Index reached its highest level in 15 months.
  • Despite global economic turmoil caused by the ongoing Russian onslaught of Ukraine, domestic markets seemed to be impervious to that tumult. Each of the benchmark indexes posted solid gains last Friday, led by the Dow (2.5%), the Russell 2000 (2.3%), the S&P 500 (2.2%), and the Nasdaq (1.6%). Even the Global Dow advanced nearly 3.0% by the close of trading. And while Brent crude oil prices surged, New York Mercantile (CL=F) crude oil prices dropped nearly 1.0% to close the day a little over $92.00 per barrel. The dollar and gold prices also fell, while 10-year Treasury yields advanced.

THIS WEEK

Employment data for February is out this week. Job growth has been solid so far this year, with 467,000 new jobs added in January. Wages rose 0.7% in January and have risen 5.7% since January 2021.

Source: Broadridge Investor Communication Solutions, Inc.

Markets & Office Closures

Monday, May 30, 2022 -
Memorial Day - Mercer Advisors office and Markets closed.

Monday, July 4, 2022 -
Independence Day - Mercer Advisors office and Markets closed.

Monday, September 5, 2022 -
Labor Day - Mercer Advisors office and Markets closed.

Monday, November 21 through Friday, November 25, 2022 -
Thanksgiving Week - Mercer Advisors office closed entire week. Markets closed on November 24.

Monday, December 26, 2022 -
Christmas Day (observation) - Mercer Advisors office and Markets closed.

Friday, December 30, 2022 -
New Year's Eve (observation) - Mercer Advisors office closed.

Articles & Education

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Navigating the Storm

Summary Q1 growth slowed, the Fed is trying to fight inflation, but global economic growth remains positive.
Investment Term of the Week

Thought of the Week

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