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Monday Money Report

| February 28, 2022

I feel as though I just came back from an amusement park.  With really big, scary roller coasters.  Continued fears of inflation and geopolitical unrest led the markets to spiral downward on Thursday morning before rebounding Thursday afternoon and Friday.  While the markets are down year to date, we are still well above last February.

Depending on how close you are to retirement, this steep drop may have caused a moment of panic.  The quick rebound shows that it’s important to stay calm in moments like this. Underlying economic data, such as corporate earnings, manufacturing and purchasing indexes, unemployment and housing starts all point to expectations of a strong year for the markets. Probably not as good as last year, but still positive.

Reacting to a short-term drop driven largely by fear only locks in what would otherwise be a temporary decline.  The quick rebound shows that people with cash on the sidelines and professional money managers used this as a time to buy.

Consider instead using times like this as opportunities. Buying low is always good. But you may also want to evaluate your portfolio.  You can harvest losses for tax purposes, rebalance to your ideal asset allocation, or sell holdings you don’t foresee doing well in the long run. Roth conversions, moving money from pre-tax to post-tax retirement accounts, is great when the market is down – all the rebound gains are now post-tax gains.

If you are approaching or in retirement, bucket strategies can help.  Having some conservative money that you can spend when the markets are down helps prevent being forced to sell at a loss. Remember that distribution portfolios look very different than accumulation portfolios.

Your action item to take this week is to freeze your credit. ID theft is still a concern.  You can contact any of the three credit bureaus to freeze your credit, meaning no one can open a new account using your social security number.  It will mean some extra hoops to jump through when you do want to open a new account or take out a car loan, but it saves much more time by preventing fraudulent accounts.

You can always find more information on our Facebook page, or 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.