The Prudent Retiree - November 22, 2022

There’s a Red House of Representatives and a Blue Senate. It’s official – the election is over and we will have divided government for the next two years. If your guy didn’t win, you may be unhappy, but investors should welcome the results. Historically, the stock market has performed best when Congress is split. Why? – gridlock. Gridlock tends to be good for markets because nothing radical gets done.

Jimi Hendrix, now there was a radical. He played a guitar like no one before or since. He is considered the consensus greatest rock guitar player of all time. His time standing next to the fire was brief. He burst on the “scene” in 1967 and died from drug related causes in 1970. I remember hearing the news on the radio when I was driving with some friends to a high school football game. He was a member of the infamous 27 Club, musicians who died at that age. He was joined by Jim Morrison, Janis Joplin and Pigpen among others. Who knows what might have been?

The election did not end all the challenges weighing on the market. Inflation, recession, the Fed, the war in Ukraine and all the rest are still with us. Prudent Retiree was hoping for a respite from politics, but Mr. Trump’s announcement means no rest for the weary. The 2024 games have begun.

Hendrix sang, “Wait a minute something’s wrong here.” 2022 has been a difficult year and much remains wrong. We have worked hard to manage risk and limit declines. Let’s hope divided government brings about better returns. We continue to believe a 50/50 allocation between equities and cash equivalents is best. We are thankful our portfolios have weathered the storm.

Prudent Retiree wishes you a blessed Thanksgiving. As investors, we have much to be thankful for. We hope you enjoy family, friends, food and your holiday traditions.

Here at Horseman Group, we strive to provide you with the highest possible level of customer service. Feel free to reach us at 314.692.7842 with any questions regarding your investments, risk management, or retirement. Should you wish to be removed from this mailing list for any reason, please respond to this email with your request, and your name will be removed immediately.

Horseman Group – 3 CityPlace Drive - Suite 290 – St. Louis, MO 63141 – 314.692.7842 – www.horsemangroup.com

Advisory Services offered through Horseman Group. Securities offered through AW Securities, a registered Broker/Dealer, member FINRA/SIPC.