April 2022

March 31, 2022

March 2022 is in the books, and we have a fair amount to talk about.  First, returns this month were actually quite decent across all the mutual funds.  As I stated last month, I do not see a safe haven for the issues we are facing, but I felt comfortable investing the funds with the strongest technical performance.  I am switching funds from 100% USIFX to 100% USAAX, but all the other fund percentages are remaining the same.

Looking forward, we saw a very concerning event with an inverted yield curve this week.  The spread between the 5-year notes and 30-year bonds inverted for the first time since March of 2006.  For many of you, I don’t have to remind you of what happened just a year later.  But for some of my younger readers, Bear Sterns collapsed 12 months later, followed by Lehman Brothers 6 months after that.  My parents remembered where they were when JFK was shot, I remember where I was when both of these events happened.  Now, an inverted yield does not mean the collapse of our banking system, but it does mean our market is out of sync with the economy, and many people think this is a harbinger of a recession in 6 to 12 months.  Breaking from this thought, I think it means we are at a higher risk for a recession unless actions are taken.

With all the above in mind, I’m still comfortable remaining 100% in the FDVLX and VIGAX.  Keep Investing!