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Equity Overview

All sectors lost ground in February except energy stocks, which generated significant gains as oil prices set new 10-year records.

Continuing the trend in December and January, value stocks again outperformed growth stocks in February.

Market volatility continued, as the S&P 500 moved by 1% or more on 10 of 20 trading days.

4^th quarter 2021 earnings reported in February again exceeded expectations. With 95% of S&P 500 companies reporting, 76% have beaten consensus earnings estimates and 78% have beaten consensus revenue estimates.

The S&P 500 forward price earnings ratio, which peaked above 23 in 2020, hit 18.5 in late February, thus dipping below the five-year average of 18.6 for the first time in two years.

Macro Overview

U.S. Economic data reported in February were generally favorable. Employment, retail sales, and durable goods orders were strong, and manufacturing continued to expand. Pandemic news was encouraging, as cases fell in most of the U.S. and businesses reopened. Inflation news was not, as consumer prices rose at an annual rate of 7.5%, a 40-year high.

But the massing of Russian troops and subsequent invasion of Ukraine on February 24 drove the news cycle. Apart from the humanitarian catastrophe it represents, the war threatens to generate shortages in critical commodities. These include, among others, energy supplies (Europe gets 40% of its natural gas from Russia), food supplies (Russia and Ukraine together produce almost 25% of global wheat exports), and essential metal supplies (Russia is the world’s largest exporter of palladium, a critical element for automotive exhaust systems and mobile phones, and produces almost 20% of high-grade nickel which is essential for electric vehicle batteries).

These shortages, coupled with the severe sanctions imposed on Russia, generate worldwide recessionary pressure while at the same time exacerbating inflation. As the Fed initiates a series of interest rate increases to quell inflation, it will now have to move cautiously to avoid tilting the U.S. economy into recession.

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets. Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.

Dow Jones	42,330
S&P 500	5,762
Nasdaq	18,189

2 Yr Treasury	3.66%
10 Yr Treasury	3.81%
10 Yr Municipal	2.63%
High Yield	6.66%

Dow Jones	12.31%
S&P 500	20.81%
Nasdaq	21.17%
MSCI-EAFE	12.90%
MSCI-Europe	12.10%
MSCI-Pacific	13.80%
MSCI-Emg Mkt	16.80%

US Agg Bond	4.44%
US Corp Bond	5.32%
US Gov’t Bond	4.39%

Gold	2,657
Silver	31.48
Oil (WTI)	68.27

Dollar / Euro	1.11
Dollar / Pound	1.33
Yen / Dollar	142.21
Canadian /Dollar	0.73

Stock Indices:

Bond Sector Yields:

YTD Market Returns:

Commodity Prices:

Currencies:

Equity Overview

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