Cash is King

2022 got off on a weak start and with the additional market declines in April doesn’t look like we’re changing course. Both equity and fixed income prices fell as the Federal Reserve began to aggressively raise interest rates to stop inflation. Some of the losses were quite remarkable.

The yield on the 10-year Treasury note is currently trading at 2.975%, up from 2.324% at the beginning of March. The Wall Street Journal reported that this was the biggest monthly increase since December 2009 while bond indexes delivered their worst quarterly return since the early 1980s. In the meantime, coupled with the stock markets current 13.3% and 21% losses in the S&P 500 and Nasdaq respectively, investors have suffered a double whammy thus far in 2022.

At the same time, the S&P 500 and Nasdaq are down 13.3% and 21%, respectively, leaving investors suffering a double whammy thus far in 2022.

To protect our clients, Walls Investments has been maintaining sizeable cash positions to help preserve principal. As the market winds begin to change, we will be in a position to buy high quality stocks and bonds at clearance prices. Cash is king, and our plan is a good one…