MWM Weekly Update

The Week of January 10, 2022

MWM Weekly Update

The Week of January 10, 2022

“An optimist stays up until midnight to see the New Year in.
A pessimist stays up to make sure the old year leaves.”
- Bill Vaughn

Greetings Everyone,

January brings a lot of expectations to mind. Jean Hersey wrote, “January is the month for dreaming.” So, let’s do a little dreaming to make the new year great with a fresh January start.

The first of the year brings us back to earth after celebrating the holidays. New Year mornings can feel like the very best time to plan and form a framework for those things we want from the year ahead. It is also the time we make resolutions many of which we will have a hard time sticking to, but some we will surely accomplish.

You might want to start with a year-end balance sheet and compare it to the prior year. Celebrate your successes and your diligence in following your financial plan. We are here to help update your plan, document your goals, and review your progress with you. Financial planning and good money management is dynamic, constantly adjusting to tax laws, cash flows, markets and personal wants and needs.

January can be a very beautiful month but for many throughout the Northwest and the country, the weather has been challenging; rain, slides, snow, road closures, flooding and then a day or two of beauty dry and normal. It feels like January is the Monday of the year! The hard winter weather outside can make us crave the warmth inside.

Depending on where you are, January can look a little different. The Oregon Coast emerged this weekend with clear sunny skies. This picture was taken at Haystack Rock in Cannon Beach.

Courtesy of Gayle and Bob, Cannon Beach, OR

At my son Steve’s beautiful home looking toward Mt. Spokane, snow, and a pair of visiting moose.

Courtesy of Steve Mathers

Sadly, we are seeing a huge spike in Covid cases in our area. Our office is taking extra steps for safety. Some in office meetings are being moved to virtual. Please let us know if you have any special requests.

TAX Reporting
Expect 1099 information from all Raymond James accounts to be mailed between January 31 and March 15th. If you need preliminary information, please let us know and we can help. Specific schedules will be released shortly.

May 2022 be the new year of peace and health seasoned with joy and purpose.

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

Please note that our office will be closed Monday, January 17, 2022 for the MLK holiday. If you need immediate assistance, please contact the Client Solutions Team at 1-855-389-0550.

In the Markets

  • After beginning the week on a high note, stocks couldn't maintain that momentum, ending the week in the red. Following a record close on Monday, the S&P 500 ended the week down 1.9%, the worst start to a year since 2016. Some investors may be concerned that the Federal Reserve will raise interest rates faster than had been anticipated. The Nasdaq fell 4.5%, its worst week since February 2021. Treasury yields continued to mount in anticipation of higher interest rates. While the December employment report showed a slightly underwhelming 199,000 new jobs added, the unemployment rate fell to a pandemic-era low of 3.9%, possibly adding further fodder for the Fed to continue its hawkish bent.
  • Wall Street kicked off the start of 2022 in fine fashion, recording record highs last Monday. The Nasdaq and the Russell 2000 climbed 1.2%. The large caps of the Dow (0.7%) and the S&P 500 (0.6%) advanced, while the Global Dow added 0.6%. Bond prices dipped, possibly in anticipation of rising interest rates, sending 10-year Treasury yields up to 1.62%. Crude oil prices rose $76.07 per barrel, while the dollar gained 0.7%. Energy (3.1%) and consumer discretionary (2.8%) led the market sectors, while materials, real estate, and health care fell. The risk rally sent gold prices down nearly 1.5% to $1,801.90 per ounce.
  • Stocks were mixed last Tuesday, with the Dow reaching its second record high in 2022, while a tech rout pulled the Nasdaq down 1.3%. The Russell 2000 and the Global Dow each gained more than 1.0% on the day, while the S&P 500 was little changed. Ten-year Treasury yields jumped to 1.66%, crude oil prices rose for the second consecutive day to close at $77.00 per barrel, while the dollar stalemated. Energy, financials, and industrials climbed higher, while information technology and health care trended lower.
  • Equities fell last Wednesday following the release of the minutes from the Federal Reserve meeting, raising the prospect for multiple interest-rate hikes beginning in the near term. The Nasdaq and the Russell 2000 each dropped 3.3%. The S&P 500 fell 1.9%. The Dow dipped 1.1%. Ten-year Treasury yields continued to rise, closing at 1.7% as bond prices fell. Crude oil prices rose marginally to close at $77.19 per barrel. The dollar was little changed. Each of the market sectors lost value, with the biggest declines hitting information technology, real estate, communication services, and consumer discretionary.
  • Stocks continued to trend lower last Thursday, with only the Russell 2000 advancing by the close of trading. The Dow fell 0.5% and the Global Dow dipped 0.4%. The Nasdaq and the S&P 500 were flat. Ten-year Treasury yields rose again, climbing to 1.73%. Crude oil prices were approaching $80.00 per barrel, while the dollar was unchanged. Energy and financials advanced, while health care and materials declined.
  • Equities couldn't reverse course last Friday, closing the day in the red. The Russell 2000 fell 1.1%, followed by the Nasdaq (-1.0%), and the S&P 500 (-0.4%). The Dow was flat, while the Global Dow gained 0.7%. The dollar and crude oil prices fell, while 10-year Treasury yields continued to climb higher, jumping 3.8 basis points. Among the market sectors, energy, financials, and utilities advanced, while information technology and consumer discretionary fell more than 1.0%.


Inflation data for December is available this week with the release of the Consumer Price Index and the Producer Price Index. The CPI rose 6.8% through November, while the PPI vaulted 9.6%. Neither index is projected to decrease based on December's figures.

Source: Broadridge Investor Communication Solutions, Inc.

Articles & Education

Capital Markets Update and Outlook: January 2023

Although the one-two punch of rising interest rates and inflationary pressure set the global capital markets on shaky footing through much of 2022, the U.S. economy kept motoring ahead. How are financial conditions shaping up in the new year?

Maximize Tax Benefits with a Qualified Charitable Distribution

The qualified charitable distribution has become popular with some IRA holders as a way of donating to charities while saving money on taxes.
Investment Term of the Week

Thought of the Week

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Investment products are: Not deposits. Not FDIC or NCUA Insured. Not guaranteed by the financial institution. Subject to risk. May Lose Value.The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Asset allocation and diversification do not ensure a profit or guarantee against loss.

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The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index.
The Global Dow is an equal-weighted stock index. It is composed of the stocks of 150 top companies from around the world as selected by Dow Jones editors and based on the companies' long history of success and popularity among investors.

Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence.  There are additional risks associated with investing in an individual sector, including limited diversification. The companies engaged in the communications and technology industries are subject to fierce competition and their products and services may be subject to rapid obsolescence. Investing in the energy sector involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors.

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Making Life a Richer Experience