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Zurbriggen Financial

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Looking back at 2021 and forward to 2022

| January 26, 2022
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2021 was a year full of political upheaval, economic stress and vaccine mandates. We made multiple changes throughout the year navigating the policies of this administration and trying to stay ahead of what was unfolding. Although it wasn't a banner year like 2020, we did stay positive in our models and ended up ahead of the curve. The new variant of COVID puta big dent in the markets and with inflation at 40 year highs, shortages of supplies and now foreign policies falling apart, prospects don't look great for this year either. We have made additional adjustments this month to all of our models to help. We believe the US market is the best place to be right now and have decreased our international holding to around 5%. We believe with the super high inflation and international turmoil that large cap US funds are a safer holding and we adjusted our positions to emphasize that. Our bond holdings have been adjusted to work in rising interest rates and high inflation.  

When bad political economic decisions are being made as much as we are seeing now, we must stay diversified, and remember that we have been through times like this before. Our models are designed to withstand things like this again. We continue to target our income to be taken out of the bond holdings that are much less volatile than the equities and that continues to work well. Our models are designed to withstand the bear markets that will continue to show up from time to time, for many different reasons. This too will pass. We will continue to watch and adjust the models to help our clients achieve their goals that are important to them, like we have for the last 34 years.

On a personal note, we were blessed with another grandchild last year, with Kyle and Elisabeth having Piper to add to Claire and we have loved spending time being grandparents!  We are healthy and have faith that God is in control of our lives and believe in faith over fear. 

I am attaching a few graphics from one of our partners, Blackrock, that helps put todays markets in perspective. We look forward to seeing you all soon and are thankful for all of you and your trust  in us to take care of your financial life so you don't have to.

Diversification

Feeling safe can be risky

Emotional Investing is a bad idea

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