State of the Market Update 

May 2022

We want to make a few minutes and give you a little bit of perspective on what we’re seeing in what is obviously a very volatile market right now.

We understand that as we go through times like these, there’s a lot of uncertainty and concern.

First, we just want to thank you for the trust that you’ve placed in our firm and want to assure you that we are here for you. We’re always happy to answer questions and walk you through exactly what we’re doing in times like these.

Please feel free to give your advisor a call. (615) 224-9794

Volatile Market: Interest Rates and Inflation

Clearly, the market has been very volatile, and there are a lot of reasons for this. I would say probably one of the core reasons is inflation is at a 40-year high, and the Fed is now coming in and trying to curtail in a pretty strong way. We’ve already had two really large interest rate increases with more to come this year, and that’s really spooked the market. And when you add to that, inflation is really impacting families and how much money they can spend.

You may be wondering- what this means for you and what you need to do now. Well, the message that we want you to hear from us is in markets like this, we believe that Beacon’s overall investment philosophies are effective.

Principle-Protected Money

If you’re with Beacon and are retired, you most likely have some of your money in a principle-protected bucket. As you know, that is one of our core beliefs. So if you have some money that is principle-protected during this volatile period, you’ve not lost any money on that segment of your money or that pocket of your money. And that’s a good thing.

Focused Income

Secondly, we also do some things within the focused income space where the value of, for example, structured notes may be down right now. However, those structured notes are written with barriers on your interest and also barriers on your principle at the maturity date. Now, if it’s been a while since you’ve been through that with your advisor and you have questions about that, we’d be happy to walk you through that.

Market Money

A couple of other things that we’ve done with the market money, is we made a particular shift with our portfolios back in February. It became pretty clear to us at that period of time, that interest rates were going to be increasing more than what most people expected as we got to the end of 2021. And we made a shift out of growth and tech funds into value funds. That’s not to say that you’re not going to have volatility. Certainly, in markets like this, you are going to have volatility and we’re seeing that in our portfolios. We think that has been a very prudent move.

If you look just at the NASDAQ itself, which is tech and growth heavy, that’s down almost 30%. Whereas the S&P and Dow are down significantly less than the NASDAQ. Now, the truth is none of us like downturns in the market. None of us like to wake up and see our portfolios being down, but in volatile times like this, that is going to happen.

Don’t Panic

I think that really the key here is to not panic and to understand that this will pass. The market will find a bottom. There are certain things that we’re looking for, and there will be opportunities that we will be able to take advantage of throughout the rest of this year.

We’re Here for You

Again, really what we want you to hear today is that we feel like we have a good handle on what’s happening, but if you specifically have concerns or questions, please give us a call. We would love to address those we’re here for you, not just when the market’s going up and things are good, but also when you have concerns and questions. Again, I just want to say, thank you so much for your trust in us.

We appreciate you and your family and wish you blessings. As we move throughout this summer together, please let us know if we can help you.

John Maxson, CEO, Senior Partner, Co-Owner


One of the surest signs of trust is when a client refers their friends and family to us for financial advice. Many of our clients have recommended our services to others, and since it’s a primary way we build our business, we’re always grateful for the referrals.

If you know of friends or family that could use our advice in this uncertain time, feel free to pass along their information here, or have them give Rachel a call and she’ll get them set up with a free consultation. (615) 716-2061. 

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