Dougherty Dispatch—Is it a Recession or Not?

Dear (Confused?) Client:

So much to say, so difficult to figure out. This week has been a big week in economic and
financial reporting. Big companies have been reporting recent profits; the Federal Reserve has
announced a 0.75% hike in their interest rate to fight inflation; the government reported how
much our economy grew or didn’t (it shrank a hair). What does it all mean for our investment
assets?

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Dougherty Dispatch—Blood on the Street

Dear Besieged Client,

Today the financial markets dropped the most since June 2020, the dark days of Covid.  Please refrain, however, from kicking your dog or jumping out of planes without a parachute.

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Dougherty Dispatch-More Pain Ahead?

Hang in there!  As the market continues to rock and roll we find ourselves taking the step backward that I’ve talked about before. We enjoyed the two steps forward for the last few years and now we must hold on tight as we move in the other direction. 

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1st Quarter Update and What's Showing On Netflix these days

We just recently wrapped up the first three months of the year and it did not come too soon. However, there has been some rebound. At my last dispatch in March, the S&P index of 500 stock performance was down more than 12% for the current year. Since then, as of today we’ve recovered almost half of that loss and are down 7% for the year currently. Meanwhile, tech stocks were down 20% last time we talked and have recovered somewhat to be down 16% for the current year.

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Dougherty Dispatch – Ukraine and Market Update

Putin and his army continue their relentless, if not efficient, attack on Ukraine.  In reaction, the western world has implemented more and more economic, business, and banking restraints on the Russians.  Oil and other commodity prices are at historic highs, and stock prices of many companies are quickly declining.

Some of our investors are nervous and wondering whether they should be doing something to defend against this, and perhaps even do something special to profit in the falling market.

As of the end of today, the S&P group of 500 stocks is down 12% year to date.  Tech stocks as a group are down almost 20%.  A few clients have extrapolated this to conclude that if things keep going like this, we will have no assets in 10 months— five more sets of 2 months multiplied by the 20% loss.

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