The third quarter pullback which we highlighted in our last correspondence led to more attractive valuations overall and an increase in buying opportunities. These factors contributed to a strong fourth quarter finish and the completion of a robust year for our Composite.
Our Portfolio has advanced sharply from the March 2020 lows, and Composite performance overall has been quite strong over the past 3-, 5-, and 10-year periods. We are now a far cry from 2008’s experience, 2009’s bear market bottom, and the third quarter 2011 price/earnings ratio lows.
These well-above average trends reflected a recovering economy, a prolonged economic expansion, low inflation, a drop in interest rates, and accommodative monetary policies. Growth was in vogue and valuations rose over this period, but the pandemic experience took matters and markets to a whole new level.
To read more, download the full Fourth Quarter 2021 Investment Perspective.