It’s that time of year when we at Advanced Wealth Management want to reach out to wish you and your family a happy holiday season and share our thoughts about the economic news, past, and present. We know this year has been challenging, but there are brighter days ahead.
The last two years have been overcast by Covid variants, and yet another one, Omicron, is encroaching. Still, we have complete faith that the US economy is strong enough to weather through once again. The recovery efforts on US soil are making a positive impact, and even with supply chains struggling globally, the goods and services sectors are going strong. Thankfully, vaccination numbers are going up, and our economy is doing well. The Build Back Better initiative, coupled with accommodating policies from the Federal sector, will continue to bring growth into the new year.
Global effects will vary widely, but we are keeping a close eye on the economic impact in both China and Europe. China is undergoing a mass shift from factory exports to consumer goods, which will have resounding influences around the globe. Similarly, Europe is feeling the pinch of inflation without the internal economic growth to alleviate it. Both markets will impact portfolio outcomes, but we believe that the positive developments within the US will alleviate any long-term effects.
It’s important to note that emerging markets are struggling to keep up, too, unlike the surge of desired outcomes in both the US and the UK. Without an abundant stimulus and massive consumer spending, these markets are at risk of economic decline.
On the upside, commodity inflation may alleviate shipping concerns in the near future. We expect it will soon reach its peak, and a gentle descent will follow. As prices rise, the influx will dwindle, allowing for a more even supply chain going forward.
Forging ahead to the new year, we anticipate a few things will change on the market front, creating new opportunities within investment strategies. It’s our belief that the beta which drove the bear market will give way in favor of an alpha-centric strategy that will continue bolstering US performance, outclassing previous markets. It will be crucial to identify which global markets are strengthening the middle class. This strategy grows consumer consumption and provides ample opportunities for asset allocation. Keep a careful eye on India, as they have several initiatives in play.
Another thing investors should note in the coming year is the energy sector. Many of the investments in previous years have focused solely on renewable, clean energy. This trend has caused the more traditional methods still in demand to fall to the wayside, leaving them without crucial capital. It’s still a long journey towards 100% green energy, and there are many investment opportunities along the way on both sides, especially in the midstream sector, including processing, transporting, and storing resources.
We at Advanced Wealth Management feel fortunate to be your team, and we will continue to work hard and bring you economic news throughout 2022. We hope you travel safely this holiday season!
As a side note, in line with our Retirement Planning “with a heart,” we wanted to announce the exciting news that our very own founder and CEO, Tony Gomes, and our very own, Jami Smith, are engaged! Here is a note from them:
“We have been engaged since August of 2020. Tony’s daughter was recently married in the middle of November, so we decided early on in our engagement to let her wedding happen before making our announcement. We also planned to wait until Covid passed before having our wedding. Now, it’s our turn! We are so happy and excited to share the news!”