January 4, 2021

Dear Clients,

Well, well, well, what a year this has been? A year I am sure most of us are glad is finally over. A year we saw the San Francisco Forty Niners lose the Super Bowl, Justice Ruth Bader Ginsburg, Elijah Cummings and Kobe Bryant sadly pass away, a Russian hack that stole an unknown number of national secrets and a COVID-19 virus that viciously ripped through our country, killing over 350,000 people and infirming millions more. Yet, with all this chaos, the markets still managed to rocket higher and hit all-time highs. So, how is this possible?

It turns out the market usually thrives on chaos. Why? At times of chaos in this country, Congress, and the Federal Reserve step in and try to stabilize the economy. They do this by pumping money into the system through stimulus and keeping interest rates artificially low. In 2020 the poor printing press worked a ton of overtime, with the US money supply increasing. All this extra money had to go somewhere. We all know it was not spent on leisure and travel. A good chunk of the money was spent on Americans daily living expenses, but another large chunk was saved. Some people diligently saved in their savings accounts while others invested their money in the markets. This investment in the markets caused markets continue to push higher. I thank you for trusting my advice during the second toughest patch of my career. If there is one thing I have learned over all these years of advising clients, it’s make a plan, have conviction in the plan and stick to the plan despite all the external forces that will try to derail you.

As we begin this New Year of 2021, I know it is tradition to make resolutions. If you are one of those people who make New Year’s Resolutions, I encourage you to make a financial resolution. How about, save a little bit more money than you are already saving? How about, setting a goal that you will strive to achieve? How about, taking a step back from your daily grind every once in a while and remind yourself how lucky you to be in the position you are in and strive to make your life even better?

Coping with the COVID-19 virus has been difficult for everyone. Not being able to see or hug family members, travel to the places we want to travel or eat at the restaurants we want to eat has been extremely hard. But there is light at the end of the tunnel. A vaccine is here, and we are closer than ever to getting out of this nightmare. We are 26 miles into this marathon, let’s not trip, fall and break our leg one quarter mile before we cross the finish line. Stay home, wear a mask and limit social interaction. The finish line is in sight and we will all get there together.

As always, thank you for your trusted relationship. The staff and I truly appreciate everything you do for us and we love doing the things we do for you. Stay safe and stay healthy.

Sincerely,

Craig Rosenblatt, CPA

Financial Advisor

California Insurance License #0E18620

The views stated in this newsletter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein.  Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.  Past performance does not guarantee future results. All investing involves risk, including the possible loss of principal.  There is no assurance that any investment strategy will be successful.