Broker Check

Monday Money Report

| January 10, 2022

2021 was a great year for stocks.  The S&P 500 was up 26.9%, or 28.7% if you include dividends. Even with Omicron fears, the economy is doing well.  The Federal Reserve Bank has indicated it may raise interest rates as soon as March.  In the short run, this will hurt bond values.  In the long run, yields will rise, providing a stronger total return for bonds. And while we don’t have a crystal ball, most economists are predicting 2022 will be a positive year for the markets.

On a personal level, this is a great time for a fast.  Many people use January as a time for resolutions, going dry, or working out. The fast I’m talking about is financial.  The majority of our spending is unconscious.  We “one-click” on Amazon, we swipe card, tap our phones or our watches. And we don’t really see what we’re spending.

Take the next week, two weeks, or month for a financial fast. The challenge is to not buy anything that is not absolutely necessary.  Basic groceries are okay, easting out is not. Getting gas is okay, but not the car wash. Unless you have to have your hair cut for your job, push that off. No gifts, no online purchases, nothing. The idea behind the financial fast is two-fold.  First, save a little money.  Pay off some debt, build your emergency savings. Second, reset your spending habits. Do you really need everything you are buying?  When you eat out every day, or get coffee out regularly, it loses meaning. Going out less frequently makes the times you do more valuable.

We have two events this month that will help with all of this.  Our signature Women, Wine & Wisdom goes co-ed for January with our economic update on the 18th.  And on Sunday, January 23rd, our six-week High School Financial Literacy class begins.  You can register on our website at

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. CovingtonAlsina and Great Valley Advisor Group are separate entities from LPL Financial.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 

The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investment(s) may be appropriate for you, contact the appropriate qualified professional prior to making a decision.