At Bassett, Dawson & Foy, the financial planning process begins with identifying and prioritizing your specific financial objectives. Together, we determine short- and long-term strategies that we think have the best potential for achieving your objectives. We can then either assist in the implementation of your plan or coordinate our efforts with other professionals of your choice. In either case, we monitor the progress you are making and review and revise our recommended actions when needed to provide you with a dynamic, up-to-date, and comprehensive plan that is designed to meet your unique needs.

This past year, 2021, we finished up our best year ever on record as assets under management passed half a billion for the first time ever ($513.6 million as of 12/22/21).  

With that, here is our outlook for 2022:

• • U.S. stocks vs. Global stocks: tend to run in 10–15-year cycles.  The U.S has been outperforming significantly since 2008.  While this may continue in 2022, the cycle is getting long in the tooth and we expect to see a reversal coming, which may lead to foreign outperformance for a period thereafter.  The longer-term trend for the U.S. dollar should also aid foreign investments as the twin deficits the U.S. is running will inevitably lead to further weakening of the dollar.

• Value stocks: which had trailed growth stocks 9 of the previous 11 years, will continue to show leadership.  This does not mean growth stocks will necessarily do poorly, but value stocks and sectors are long overdue to catch-up some of the disparity in performance from the past decade.
• Large cap stocks vs. Small cap stock (S&P 500 vs Russell 2000): these outperformance cycles run around 7 years on average.  Following a 9-year run from April of 2011 through August of 2020, large cap stocks had outperformed small caps by a total cumulative return of 221% to 111%.  Since September of 2020, small caps have outperformed large caps by 15% over the past 14 months.  We expect this reversal will continue and small caps will outperform over the next 5 years or more.
• It will be important to continue to add to “outside the box” or alternative investments to reduce the risk you have by staying in the same stocks that have done well up to this point.  We continue to look at investments such as global infrastructure, MLP energy, alternative energy, water, commodities, and/or REIT investments.  Intending to offer good yields and inflation protection.
• For the next couple/few years, while the Fed is raising rates and until yields on bonds are higher, we will continue to utilize invest investments like “non-traditional” bond funds, floating rate funds, and other multi-sector bond funds looking for slightly better returns than traditional high-quality investment grade bond funds.  
• We suspect we may see a greater breadth of stocks aiding future increases in the market. While the few that have led over the past decade, may underperform in the longer-term.  If correct, we would likely see active managers reverse the trend of underperforming cheap passive investments

At Bassett, Dawson & Foy, it is important to us that our clients are comfortable with each step of establishing their goals and implementing their financial plans. With this in mind, we have built our company with a philosophy of old-fashioned service and satisfaction, striving to provide our clients with the highest level of service possible.

Bassett, Dawson & Foy Inc. E.A. Delle Donne Corporate Center // 1011 Centre Rd., Suite 110 // Wilmington, DE 19805 // 302-999-9330 or Toll-free 888-811-4223

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment Advisory services offered through Raymond James Financial Services Advisors, Inc. Bassett, Dawson & Foy is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc.

Any opinions are those of Bassett, Dawson & Foy and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Alternative Investments involve substantial risks that may be greater than those associated with traditional investments and may be offered only to clients who meet specific suitability requirements, including minimum net worth tests. These risks include but are not limited to: limited or no liquidity, tax considerations, incentive fee structures, speculative investment strategies, and different regulatory and reporting requirements. There is no assurance that any investment will meet its investment objectives or that substantial losses will be avoided.

Investors should carefully consider the investment objectives, risks, charges and expenses of mutual funds before investing. The prospectus and summary prospectus contains this and other information about mutual funds. The prospectus and summary prospectus is available from your financial advisor and should be read carefully before investing.