Monthly Archives: April 2022

Hikes and Tapering

Market Memo

 April 2022 – By Kyle Rohrwasser

Russian President Vladimir Putin says peace talks have reached a “dead-end situation” after Ukraine made allegations about war crimes. It seems that war in Ukraine will continue as Russian forces shift their focus toward Donbas. The war is weighing on the global supply chain, especially within the global food supply.  The disruption increases the price of the food we eat and the inputs needed to successfully grow that food, such as fertilizer and herbicide. As of the end of last week, 2022 returns for most equity sectors are negative.  Energy is a notable standout but unsurprising given the recent global events driving energy prices higher.   

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Secure Act 2.0 & Potential Changes

April 2022 – Ryan Boyle, CRPC®

As of March 30, 2022, the Senate has begun to review the Securing a Strong Retirement Act of 2022, which calls for multiple improvements revolving around saving for retirement.  The draft as of now calls for increases in catch up provisions in retirement accounts based off costs of living, increases based off inflation for qualified charitable distributions, reducing the excise tax imposed on those who miss their required minimum distributions, delaying the starting age for required minimum distributions, and other benefits pertaining to employer-sponsored retirement plans.

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Bond Market Update

Market Minute

April 2022 – Scott Rosenquist, CFA®

The bond market had its worst quarterly return in decades, down 6% as bond yields rose during the quarter and the Federal Reserve sharpened its focus on inflation. Bond prices move inversely with yields. The unemployment rate now at 3.6%, is near pre-pandemic levels but inflation continues to stay stubbornly elevated. The Federal Reserve raised interest rates by a quarter percentage point after its March meeting, the first-rate increase since 2018, and signaled six more increases for the year. As the Federal Reserve’s plans for fighting inflation became clearer, the bond market responded by quickly adjusting yields higher across the entire curve.

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