Review & Outlook

July 13, 2022

The 2nd Quarter of 2022 firmly pushed markets into Bear Market territory. With the S&P 500 scoring its worst first six months of a calendar year since the early 1970s, Carderock stocks are down (-25%) on average. At this stage, Quality’s virtues in moderating stock declines have yet to show their mettle – but they will. We strongly believe the companies we invest in will remain buoyant and come out on the other side intact and positioned to do well in the next cycle. In the meantime, the Federal Reserve’s rate increases have crunched the resilience of bond values such that a portfolio balanced with a 55%-35%-10% (Stock-Bond-Cash) allocation fell approximately (-15%). This, too, will pass.

Review & Outlook

July 13, 2022

The 2nd Quarter of 2022 firmly pushed markets into Bear Market territory. With the S&P 500 scoring its worst first six months of a calendar year since the early 1970s, Carderock stocks are down (-25%) on average. At this stage, Quality’s virtues in moderating stock declines have yet to show their mettle – but they will. We strongly believe the companies we invest in will remain buoyant and come out on the other side intact and positioned to do well in the next cycle. In the meantime, the Federal Reserve’s rate increases have crunched the resilience of bond values such that a portfolio balanced with a 55%-35%-10% (Stock-Bond-Cash) allocation fell approximately (-15%). This, too, will pass.