“Once a journey is designed, equipped, and put in process, a new factor enters and takes over. A trip, a safari, an exploration, is an entity, different from all other journeys. It has personality, temperament, individuality, uniqueness. A journey is a person in itself; no two are alike.” John Steinbeck
Good morning,
When was the las time you took a road trip?
As most of us understand, “It’s not about the destination but the journey”, traveling is one of the most rewarding and empowering activities a person can embark on. Apart from selfdevelopment, it also leads a person in creating a myriad of lifetime memories. A road trip is another unique travel experience that most of us should consider as we head into summer. The thought of dropping everything, hopping into a car, and setting off into a new adventure is an astounding idea for the ultimate vacation. A road trip presents opportunities for us to discover places that we never knew existed and offers opportunities from creating memories to selfreflection. Road trips offer a sense of freedom and adventure….they are also journey’s od discover and a reminder to enjoy the ride.
As we always remind clients at Henderson Wealth, Discovery is the Journey and taking off on an adventurous road trip has plentiful benefits. With a little bit of planning, you can embark upon experiencing a spontaneous vacation and embracing the unexpected on a road trip. As I prepared for my own families road trip on the weekend and follow in the illustrious footsteps of John Steinbeck, Jack Kerouac, Bob Seger. And like Jack Kerouac, I wrote down my top 10 benefits of the road trip I thought I’d share with you this morning, for reflection and perhaps some motivation for adventure.
- Road trips help you live in the moment
- Road trips help you maintain perspective
- Road trips help you be patient with the people around you
- Road trips force you be open to opportunity
- Road trips help you connect with people with no expectations
- Road trips allow you to pursue your own unique experiences on the road
- Road trips help you embrace curiosity
- Road trips give you time to reflect
- Road trips encourage gratitude
- Road trips reignite your enthusiasm
“You may not find a path, but you will find a way.” Tom Wolfe
And now, to the Markets
Coming off a positive week, the best week since November 2020, we are looking to open up green again this morning. Although here in Canada there are still concerns around surging inflation, aggressive central banks, slowing economic growth, and geopolitical conflict, all themes that have climbed to the top of the list of investor worries.
In the US, from a valuation perspective, the S&P 500 has declined materially thus far this year with the 2022 P/E ratio falling to 17.3x currently from 21.3x. This 19% valuation decline has occurred largely as earnings expectations have surprisingly held steady throughout he year. The real culprits behind this re-rating lower likely include rising geopolitical uncertainties around the world, inflation that has accelerated to multi-decade highs, and a Fed that is attempting to tame said inflation despite an unprecedented starting point in the sense that interest rates are so far behind the inflationary curve. The U.S. economy is consumption driven, with just under 70 percent of U.S. gross domestic product directly attributable to personal consumption. The next largest component— private domestic investment—is indirectly influenced by consumption trends, as business investment tends to ramp up and down to meet expected future demand. By most measures, the U.S. consumer remains in good financial shape. Unemployment is near record low levels, average hourly earnings are at their highest levels in nominal terms, and with two job openings for every unemployed worker, prospects for continued wage strength appear robust. It’s true that wages have not been keeping pace with inflation, but if food or energy prices decline, workers may see meaningful increases in discretionary income.
It would not be surprising to see some softening of demand as consumers react to inflation and higher interest rates. Against this backdrop, it is somewhat surprising to see the litany of financial headlines portraying a near term recession as inevitable. As we have highlighted in the past, while risks of recession are present and may increase in the following months, we are optimistic and strongly looking at this market as one of opportunity and taking advantage of the shifts in sectors and sentiment.
“Look at life through the windshield, not the rearview mirror.” Byrd Baggett
As we head into the week, consider a road trip and all the advantages of getting into your car and driving. It’s been said that a road trip is a perfect way for the whole family to spend time together and annoy each other in interesting and new places. As is this one life, the world is wide open and it’s yours to discover.
“Map out your future – but do it in pencil. The road ahead is as long as you make it. Make it worth the trip.” Bon Jovi
Be well & enjoy the moments
Derek