The month of July marked the beginning of 2Q 2022 earnings season for Corporate America. Bell
weather tech companies like Apple, Microsoft, Google-Alphabet, and Amazon led the way with strong
year-over-year gains. In light of recent economic troubles, it is impressive how stocks were able to
rebound so quickly from a sizable market drawdown in June and one of the worst first halves of the year
on record.

Reflecting on the turnaround, it is important to remember that accurately predicting short-term returns
is impossible. In the short-term, group of investors and speculators react to every piece of information
of varying levels of relevance. Over time however, the true value of an asset is predicated on its ability
to generate and grow cash earnings or free cash flows, with weight being ultimately underpinned by
profits/net cash flows.

Key points:
• The Federal Reserve’s favorite measure of inflation, the Personal Consumption Expenditure Deflator
(PCE), continues to run persistently higher than the FOMC’s 2.00%-2.50% target rate—however, it
seems tshortages will ease in many key commodities soon.
• Momentum for corporate earnings can only be maintained if there is a stable economic environment,
which seems unlikely at this point as high geopolitical tensions threaten global growth rates.
• We continue to advise investors about their need for sound portfolio management and caution them
against day trading practices which can contribute to unnecessary losses without sustainable returns
over time.


About Trajan Wealth:
Trajan Wealth LLC formed in 2012, was founded by CEO Jeff Junior. Before his 20+ years in the financial
services profession, Jeff Junior was a United States Marine Corps member. Jeff continues to serve his
clients and employees with the utmost service, respect, and attention to detail.Udayan Mitra, CFA, came

to Trajan Wealth with over two decades of experience in the investment management industry. He
earned a Bachelor of Science degree in Economics from the London School of Economics and an MBA in
Finance from Rice University.
For the full article: https://trajanwealth.com/blog/july-2022-market-review/?utm_source=2060&utm_medium=PR&utm_campaign=Wealth-content-August2022

For more information on all the different services offered or to schedule a complimentary
consultation, visit https://trajanwealth.com or call 1-800-838-3079
Disclosure: *Investment advisory services offered through Trajan Wealth, LLC, an SEC registered
investment advisor.