It has been a challenging year for the financial markets. We wanted to offer our investment view and outlook now, as opposed to waiting until you receive your quarterly Talbot Financial portfolio review in mid-October. Please note, your Schwab brokerage statement as of September 30, 2022, is available online by logging in to your account at www.schwaballiance.com.

Higher inflation and the fear of a potential economic recession resulted in a broad sell-off across the financial markets during the first half of the year. The Index declined 16.1% during the second quarter and is down 20% through the first half of the year. Furthermore, the Bloomberg U.S. Aggregate Bond Index, a measure of the total bond market, fell 10.3% through the first half of the year. Therefore, the sell-off has adversely impacted both stocks and bonds.

As we continue to navigate the challenges in the world around us, we want to express our concerns and sadness for the suffering and devastation of the Ukrainian people. In the midst of this violent tragedy, we are inspired by the courage and spirit of the people of Ukraine, and we remain hopeful for a path forward of stability and peace.