Right now there are concerns about inflation, a recession and their effects on the market.  These issues are complex, so let’s simplify things by taking a step back and looking at some history.  Based on the history of our funds and the market, here is what we know.  Our portfolio of funds returned:

 

Our L.O.R.D.S. Strategy in the last 5 years outperformed its historical average annual return since 1985 by 5.7% with a 21.6% average annual return.  Similarly, the 3 indexes have outperformed their average annual return since 1985 by 6.5% with an average annual return of 19% from 2017 – 2021.

 

So what does this all mean?  Whatever the reason, we are seeing a correction in the market towards its long-term historical returns.  It had to come eventually.  We look at this downturn as a good buying opportunity, with many of our funds being in the position in their cycle that we want them in when buying.  Meaning that, the funds 1 and 3 year returns are underperforming their lifetime returns.  This is why we always select funds with at least 25 years of history, so that we can look at their performance over a long period of time in order to understand when it is a good opportunity to buy them.  So we see these times as a very good opportunity to buy, one which we haven’t seen in years.  Past performance is no guarantee of future results, but past performance is the best indicator that we have to go on.