2021 | Year End Review

Using well known market indices to measure asset class performance this past year shows that of the 5 major asset classes we invested in, real estate led the list, domestic stocks {like the S&P 500} were 2nd, large cap value stocks were 3rd, bonds were in 4th place and emerging markets stocks were in last place.

For the 4th quarter, our various strategies mirrored their market benchmarks in direction. Our Real Estate Strategy was 1st, our All Cap Multi Style Strategy for US stocks was 2nd, our Large Cap Value Strategy (US stock picking) was a close 3rd, our Bond Strategy was 4th, and our Emerging Markets Strategy was 5th.

For the full year, the following total returns, before our management fee, for our various strategies are shown versus a market benchmark index for comparison. Remember market benchmarks have no fees and are therefore hypothetical but helpful in suggesting up versus down portfolio expectations for real portfolios:

Real Estate = 47.05% versus Dow Jones REIT Index at 38.99%

All Cap Multi Style = 22.94% versus S&P 500 Index at 28.71%

Large Cap Value = 23.55% versus S&P Large Cap Value Index at 24.90%

Bond Strategy = -0.02% versus US Treasury 1-3 year Bonds at -0.06%

Emerging Markets = -12.72% versus MSCI Emerging Markets Index at -2.22%

Except for clients requiring a cash balance, we are, and shall remain, fully invested. Clients getting payouts (like the 2021 return of the IRA required minimum distribution “RMD”) and periodic cash flows to live on, all got their money as expected.

We shall monitor events worldwide that could have a meaningful impact on our country, our economy, and our markets. One such event is the action Russia takes with respect to invading Ukraine. Current Kazakhstan problems may alter Russia’s priorities and reduce the likelihood of a Russian invasion of Ukraine. Another is China’s economic activity as it tries to overcome COVID related negatives, supply chain issues and reduction of domestic manufacturing as foreign countries withdraw plants and repatriate them. Lastly, for now, the 2022 mid-term elections here in America will also play a role in market direction as well as political responses to economic growth changes, interest rates and how fully available jobs get filled.

As always, please call with any questions.

Jonathan F. Kolle, CFA               Joseph K. Champness            Shawn R. Keane, CFP®   

President                                      Director                                    Vice-President              

                  Rusty Giles                                               James V. Kelly, CFA

                    Director of Marketing                                  Director