The Prudent Retiree - April 19, 2022

The Lovin’ Spoonful was a renowned 60’s rock group led by John Sebastian. They had a string of hits including “Summer in the City” and “What a Day for a Daydream” and were inducted into the Rock & Roll Hall of Fame in 2000. Sebastian played by himself at Woodstock and was memorialized in the movie. He seemed a bit dazed and confused. Something in the air. He also wrote the theme song “Welcome Back” for the hit television show, Welcome Back, Kotter.

Sebastian’s song, “She is Still a Mystery,” explored the ongoing wonder of his relationship with a woman. Investors have an ongoing wonder about our relationship with the market. Prudent Retiree has been at this since 1978 and it’s still a mystery to me. The mystery of why the market reacts as it does is why we advocate listening to the market. The market often sees things differently than we do.

Sebastian sang, “You’re always waiting to see behind the door.” When we look behind the door now, we see chaos. War, covid, global and national political tension, prices increasing on everything, we are unsettled and uncertain. One would expect the market to crash, but it hasn’t.

Prudent Retiree is committed to risk management discipline. Our model currently reflects all this uncertainty. Some metrics are very negative, others positive. We suggest moving to 50% of your normal equity allocation in non-taxable accounts. We have made this change in the accounts we manage. We’ll closely monitor changing markets and act appropriately to manage risk. Right now, it’s best to be cautious.

The Lovin’ Spoonful had a hit song titled “Do You Believe in Magic?” We’re not sure about that, but the world could use some now.

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. 

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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.