Milestone Market Update - June 2022

June 24, 2022

Boxing Image JPEG

Prices are rising everywhere due to lingering COVID supply issues/shutdowns and the Russia/Ukraine war. This is causing the Federal Reserve to raise interest rates in an effort to slow overall demand for goods and services in the economy. Rising rates have delivered a one-two-punch to investors as even conservative investments are down so far this year. 30-year mortgage rates are now above 6%, which is almost double where they were last year at this time. We are starting to see business inventory levels recover and there are signs that inflation might be close to peaking, but last Friday’s inflation report was clear that we are not there yet. It is likely we will continue to see high volatility in the markets for the next few months.

The key to long-term investing success is not getting knocked out by these blows. History has shown that we get punches like this every so often, but usually not all at once.

· S&P 500 is down 20% once every 5 years. 2022 Return: -20.79%

· Nasdaq is down 30% once every 8 years. 2022 Return: -30.91%

· Bond market is negative once every 10 years. 2022 Return: -12.10%


In the history of the bond market, we have never seen a double-digit decline. We've also never had a pandemic followed immediately by a war. Unprecedented times create unprecedented results. There is no question, it hurts. But as investors, we know that riding out these tough periods is the price we pay for higher expected returns in the future. In times like these, it can be beneficial to zoom out from focusing on just your account value and to remember what the money you are investing is for. While it is human nature to feel like we have to fight back and do something, the best thing to have in your corner right now is patience. Just like we have battled through previous down markets, we will get through this one.

As always, we will be looking for opportunities to best position your portfolio to meet your financial goals and appreciate the trust you have placed in us. If you’d like to discuss your portfolio outside of your normally scheduled review, please don’t hesitate to reach out to us.

Milestone News


Tyler MS Walk

 MS Walk Group

Congratulations to our financial planning analyst Tyler Watkins and his wife Alexis for raising over $5,000 to benefit the National Multiple Sclerosis Society. Nice work!

Leslee Headshot Updated

While we will miss her, we are excited for Leslee as she moves on to a new career in the nursing field.

Leslee writes:

"After 22 years in the financial industry, I have decided to make a career change and will be leaving Milestone. It has been a pleasure working with each and every one of you and I value the relationships i have built while working here. I have worked at various firms over the course of my career, both large and small, and Milestone is by far the best firm i have worked for"

We look forward to continuing to work with Leslee in the future as a friend and client.

 Meet Jeff Lanscek, CFP

Jeff golfingJeff family

Jeff is the newest advisor to Milestone and is a lifelong resident of Bethlehem. Jeff attended Bethlehem Catholic High School and went on to receive his finance degree from Lehigh University. Jeff and his wife Annie have three daughters, Mckinzie, Mckayla, and Mckiley. When he isn't busy at work or with family, Jeff loves to golf. His favorite course is Woodstone and he has aspirations to one day play in Scotland. Jeff has over 20 years of experience and we are excited to have him in our Bethlehem office!