Broker Check

New Year Letter

January 10, 2022

Dear Valued Client,

As we say goodbye to 2021, we would like to wish you a happy and prosperous new year. While the past two years have been challenging, a new year always gives us an opportunity to better ourselves. Why not start with getting your financial house in order? We, at McLoughlin Financial, now have several tools to help you clarify your financial picture.

As you may know, in August I switched my broker dealer affiliation to Independent Financial Group (IFG), which required you to sign forms to bring your account with me. If you signed the forms, thank you. If you didn’t sign new forms, I urge you to contact us as soon as possible as I can no longer view your accounts or service them.

I made this decision to switch because IFG is an excellent financial firm which has a remarkable team of experts available to me. IFG enables me to offer – entirely without cost or obligation – an analysis of where a family stands at any given moment in their retirement planning. We ask: are you on track to retire when you want to, the way you want to? Are your investments really suited to your long-term retirement goals? Do you know how much money it’s going to take for you to retire comfortably – and stay that way? I don’t know anyone who wouldn’t benefit greatly from finding out those answers. Thus, I would welcome the opportunity to take you through the process of getting them.

For the past two years the world has dealt with the greatest global public health crisis in a hundred years. Congress and the Federal Reserve responded with a wave of fiscal and monetary stimulus which was and remains without historical precedent. That flood of stimulus money along with supply chain backups and staffing shortages has led to higher prices on most goods. Yet the stock market rose 27% in 2021.

In the new year we are continuing to face inflation, supply shortages, Omicron, and political division. However, it’s likely that in the coming year (a) the lethality of the virus continues to wane, (b) the world economy continues to reopen, (c) corporate earnings continue to advance, (d) the Federal Reserve begins draining excess liquidity from the banking system resulting in higher interest rates, (e) inflation subsides somewhat, and (f) barring some other crisis—which we can never really do— stocks continue to advance, though less than the blazing pace at which they’ve been soaring since the market trough of March 2020. This is not a forecast. It’s that these outcomes seem to me more likely than not. I’m fully prepared to be wrong on any or all of the above points; if and when I am, my recommendations to you will be unaffected, since our investment policy is driven entirely by the plan we’ve made, and not at all by current events. If there were ever a time to just put our heads down and work our investment and financial plan—ignoring the noise—this is surely it.

What came to matter most the past two years was not what the economy or the markets did, but what the investor himself/herself did. If the investor fled the stock market during either crisis—or, heaven forbid, both—his/her investment results seem unlikely ever to have recovered. If on the other hand he/she kept acting on a long-term plan rather than reacting to current events, positive outcomes followed.

We’re convinced that the economy cannot be consistently forecast, nor the markets consistently timed. Although I expect the markets to be favorable, there is no guarantee where the markets will be short or long term. Therefore, we believe the essential challenge to long-term successful investing is neither intellectual nor financial, but temperamental: it is how one reacts, or chooses not to react, to market declines.

Call me with your concerns or to reconnect and to see if we can be of useful service to you and yours. In the meantime, please visit our website:

Charles H. McLoughlin