This year so far has provided very little for investors to celebrate amid soaring inflation, rising interest rates, and the ongoing global economic uncertainty. Regardless of whether you are invested in stocks, bonds, or a mutual fund comprised of one or both, 2022 has proven to be a challenging year across all asset classes.

I am sure that it can be difficult to remember, as you log in and look at your investment accounts these days, the recent bull market run that we enjoyed through the end of 2021. When month after month portfolios continued to increase, there was greater confidence in the overall outlook regarding financial security. During times of uncertainty, we look to one of the world's most successful investors - Warren Buffet - to provide inspiration with one of his most famous quotes: "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes."

Simply put, Mr. Buffett is a strong proponent of value investing for the long term, a strategy which he has embraced and profited from over the years. Crucial to this strategy is to avoid panic selling at all costs, no matter how tempting it may be as you watch the value of your portfolio fluctuate during these uncertain times. In fact, financial experts say a bear market is a perfect opportunity to continue buying as a way to take advantage of lower stock prices - as they will eventually return to positive territory.

Historically, the average bear market lasts 289 days. At the time of writing, we are on day 248 of this one, which means that we are much closer to the end with potentially only 33 days left - if the experts are correct. Whether or not we are at or near the bottom remains to be seen, particularly with the ongoing global uncertainty and the fact that markets will rise or fall in the short term on both good and bad news.

A case in point is last week's announcement of the hotter-than-expected US inflation figure. The report showed that inflation rose to 8.3% YTD in August and confirmed that the cost of living is not yet falling as quickly as the US Federal Reserve had hoped. Like clockwork, investors were spooked by the news. Before the data was released on Tuesday, the S&P 500 was in positive territory. By the end of the trading day, however, it had fallen by 4.3 percent in the biggest fall since June 2020, a time when the world was in the depths of the Covid-19 pandemic.

While some investors can find it difficult to ignore the gloomy projections and struggle to stop themselves from selling everything they own in panic, Mr. Buffett again comes to mind with his words of wisdom: "Remember that the stock market is a manic depressive." Clearly, it's safe to say that the swinging highs and lows of stock markets will continue on as they have always done. In the meantime, it is important as an investor to remain steady for the long term, continue to buy the dip (when possible), and look forward to the future with confidence.

I have included a 2022 Andex Chart for your review, which I feel is an excellent way to maintain perspective and help to restore confidence. With copious data going back to 1950 relating to various stock market indexes, interest rates, and historical events, this chart clearly details the resulting compound returns despite the market volatility over the years.

We will continue to monitor your portfolio, help you to remain focused on your goals, and will be in touch regularly. In the meantime, don't hesitate to reach out if you have any questions, concerns, or would just like to chat about anything.