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Arthurs’  Notes










                                        The S&P 500 had another particularly impressive year in 2021, up 28.17% with
                                        dividends included. However, some of the best bull markets require pullbacks
                                        and so far, (as of 1/10/22) that’s what we’ve seen to kick off 2022. The S&P
                                        was down 2.5% in the opening week of trading and you’ll hear naysayers out
                                        there with comments like “the party is over is over for stocks” but historical
              trends show that’s not the case. Since 1950, there have been 19 years when the S&P gained 20% or more.
              In 16 of those instances the market finished higher the following year. If you’ve read “Arthurs’ Notes” before
              you probably know by now that I’m very passionate about stocks (along with golf and fishing) and oftentimes
              leads to me talking about stocks with friends and family. In a conversation with my mother-in-law about
              the recent selloff earlier this year she said, “I maybe look at it once a quarter” referring to her investment
              account. She’s been a long-term investor her whole life and understands the short-term ups and downs of
              the stock market. At first, this baffled me because from a young age, I’ve studied the stock market almost
              every day even before I had money to invest. But the more I thought about it, the more I thought… that’s a
              pretty good approach for investing especially if you’ve hired someone you trust to do it for you. Hence why
              my clients stay invested, stick to a game plan and we rebalance portfolio’s accordingly to long term targets.
              Here are some bullets from one of my fairly recent letters to investors:
              4  Corporate  Earnings  grew  at  a  faster  rate  than    4  The most recent wave of Covid, the US Federal
                the stock market last year meaning the market       Government did not institute any lockdowns.
                trades  at  lower  multiples  than  this  time
                last year.                                      4  Between  the  Trump  and  Biden  administration
                                                                  approximately  $6.2  Trillion  Dollars  have  been
              4  Jobless claims recently fell to the lowest level in      issued in the form of fiscal stimulus (equates to
                50 years with the unemployment rate at 3.9%.      almost $19,000 a person).
                U.S.  deposits  have  grown  127%  over  the
                past year.                                      4  The  national  average  for  a  30-year  fixed-rate
                                                                  mortgage  is  ~3.25%  and  the  national  average
              4  Granted  inflation  has  some  worried  about      interest  rate  paid  on  a  new  car  loan  is  4.73%.
                grocery  prices,  people  tend  to  ignore  the  fact       Credit is still widely available at near historically
                that  home  and  used  car  values  have  gone  up      low interest rates.
                significantly as well.
                                                                4  In  a  recent  AP-NORC  Center  for  Public  Affairs
              4  U.S.  corporate  balance  sheets  are  45%  higher       Research  survey,  65%  of  Americans  are
                than the average of the preceding five years.     optimistic  about  their  own  situations  and  an
                                                                  even  higher  percentage  express  confidence
                                                                  they could find a good job right now.




              Arthurs Wealth Management is an independent minded advisory firm. Please visit arthurswealthmanagement.
              com for info or to schedule a complimentary review of  your portfolio. This commentary is for informational
              purposes only and is solely the opinion expressed by Arthurs Wealth Management. We reserve the right to modify
              our investment strategy based on market dynamics/individual client needs.



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