facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

The DDK Group

News & Insights

Q1 2022 Review & Outlook Thumbnail

Q1 2022 Review & Outlook

The new year saw markets peaking in the first couple of trading days with the volatility of the latter part of Q4 2021 continuing throughout the quarter. All asset classes, except for supply constrained commodities, showed remarkably consistent returns to the downside. The Federal Reserve, having just begun its rate hiking and quantitative tightening, is clearly playing catch-up to realized inflation. The risk now is whether demand in the economy is sufficiently strong to overcome higher interest rates such that the economy does not fall into recession. The hope is that the Fed will engineer the proverbial “soft landing.” We believe that recent volatility will continue through most of the year. Inflation should ease over this year and next, in line with the Fed tightening cycle, without an adverse effect on employment as there remains 1.8 open jobs for every person on the unemployment rolls.

Read More
Death, Taxes and... Demographics Thumbnail

Death, Taxes and... Demographics

After months of feverish speculation, last week the Fed announced the first increase in interest rates since 2018 – with six additional increases to come in 2022. This long-expected announcement is, in part, intended to help slow inflation that’s increasing at the fastest clip in 40+ years. But is this really the 1970s, reprised? Our global aging population is part of the answer. Baird Vice Chairman, John Taft, spoke with our colleague Warren Pierson, Co-Chief Investment Officer at Baird Advisors, to get his perspective on the impact of demographics on inflation and interest rates – and what we might see in the months and years ahead.

Read More
Is It Time to Sell Stocks Thumbnail

Is It Time to Sell Stocks

Our friends at Dimensional Fund Advisors recently addressed market timing and tactical asset allocation against the current environment of rising inflation, the likelihood of higher interest rates and the War in Ukraine. The historical perspective adds good support for the conclusion that attempts to avoid short term volatility can lead to significant portfolio underperformance over the longer term and our view that clients remain at or near their strategic asset allocation while maintaining enough cash to meet near term needs. Should you wish to discuss with a member of our team please do not hesitate to reach out.

Read More
Russia - Ukraine Tensions Thumbnail

Russia - Ukraine Tensions

Baird's Washington Policy team takes a look at some potential next steps, likely sanctions, and longer-term implications of the action.

Read More
Q4 2021 Review & Outlook Thumbnail

Q4 2021 Review & Outlook

Last quarter, we observed that the Fed would likely normalize rates faster than some expected as to not let the economy overheat. The early January markets seem to be proving that out. The knock-on effects of higher rates are being felt in the equity markets. Growth companies have been most affected when measured by fundamentals such as earnings as well as the discounted present value of future earnings. Until corporate earnings show the ability to outpace the effect of interest rates on stock prices there will be increased volatility in the equity markets. Value should continue to outpace growth over the near term; a trend that began late in 2021 and has accelerated in early 2022. It is against this backdrop that we attach Baird’s 4Q21 Market Update and Rolling Asset Class Returns for the past 20 years along with quarterly 2021 asset class returns. It does not appear that Large Cap Growth is in a position to continue its streak of three years and four of five years as the best performing asset class. As we invest on behalf of clients, we will continue to favor value over growth and short term fixed income over longer duration. We continue to advise clients to be at or below strategic maintaining surplus cash for near-term needs. The DDK Group is excited to announce that Tiffany Kowieski, along with her husband Matt, welcomed their daughter, Quinn Elizabeth Kathryn on December 20th, 2021. Mom and baby are both doing well, and big brothers Theo and Wes are so excited! Tiffany will be on family leave through mid-March.

Read More