We hope that you had a very happy and healthy holiday season. We are making progress on our exciting transition to becoming a Registered Investment Advisor, using BNY Mellon | Pershing to custody our clients’ assets going forward and no longer be affiliated with Wells Fargo Advisors Financial Network. We expect this transition to start in the second quarter of 2022. Please continue to watch your email for further communication in the coming months regarding details of the transition. As always, please reach out to your advisor or client service associate with any questions.
As we sit today, we expect the first half of 2022 to be positive for the equities market with continued Fed stimulus, post-Omicron opening, pent up spending and inventory rebuilding. In the second half of 2022, however, there could be more market disruption, primarily due to three key factors: (1) earnings growth slowing down from its current highs; (2) inflation remaining higher for longer; leading to (3) interest rates rising sooner than later. Consistent with our message last month, we believe that equities are still the place to be, as fixed income faces significant headwinds in a rising interest rate environment. On page 2 of our newsletter, we have shared with you Wells Fargo Investment Institute (WFII)’s 2022 Outlook.
It has been wonderful seeing so many of you in person at our client luncheons at the Ritz Carlton Beach Resort. We have two additional luncheons planned for 2022. Please see page 4 of the newsletter for dates and how to RSVP. As always, please contact our office if you have any questions or if we may be of help in any way. It is our privilege to be of service to you and your family.
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