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Dear Clients and Friends of Kondracki Advisory Investment Management,

In what has been a very volatile year thus far for the stock and bond markets, our year-to-date composite total return through October 7, 2022, is -8.80%, vs. -22.73% for the S&P 500 Index, -18.18% for the DJIA, and -32.30% for the Nasdaq. The iShares Core U.S. Bond ETF (AGG) returned -14.70%. Taking a longer term look at our investment performance, our one-year composite total return through October 7 is -1.65% vs.-16.04% for the S&P 500 Index, and -14.59% for the Aggregate Bond Index. Our three-year and five-year average annual composite total returns through October 7 are 9.65% and 8.70%, respectively, and have been achieved with nearly 40% less volatility than that of the stock market. Our portfolios have generated significant alpha relative to the S&P 500 over every measured time frame since the inception of our firm and have demonstrated superior downside protection as compared to the S&P 500 Index during periods of considerable market volatility. This has always been our goal, and consistently achieving it is foundational to our value proposition for clients. Download Commentary

Dear Clients and Friends of Kondracki Advisory,

In what has been a volatile first half of the year for the stock and bond markets, our year-to-date composite total return through June 30, 2022, was -7.05%, vs. -19.96% for the S&P 500 Index, -14.44% for the DJIA, and -29.51% for the Nasdaq. Taking a longer term look at our investment performance, our one-year total return through June 30 was 1.80% vs. -10.62% for the S&P 500 Index. Our three-year and five-year average annual total returns through June 30 are 10.30% and 10.20%, respectively, and have been achieved with nearly 40% less volatility than that of the stock market. Our portfolios have generated very significant alpha relative to the S&P 500 over every measured time frame since the inception of our firm.

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Our portfolios performed very well in what was a challenging and volatile first quarter for the stock and bond markets. Our composite total return through March 31, 2022, was 1.37%, vs. a -4.62% return for the S&P 500 Index and a -4.14% return for the DJIA. The Nasdaq was -9.10%. Our equity positions achieved a total return of 1.92%. Our average cash position of 23% helped protect against the stock market downside while also allowing us to be opportunistic buyers during periods of significant market volatility. We are accomplishing our stated goals of achieving a reasonable return with protection of principal and have done so since the inception of the Firm.

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Our conservative equity portfolios performed very well in 2021, having achieved most of the upside of the stock market along with significantly less volatility and reduced risk to principal. Our composite total return through December 31st, 2021, was 22.70%, while our equity positions, which represented 80% of our total portfolios for much of the year, achieved a 29.90% total return. The total returns on the S&P 500 and DJIA were 28.67% and 20.83%, respectively. Download Commentary

Our conservative equity portfolios have performed well this year, having achieved much of the upside of the market along with significantly less volatility and reduced risk to principal. Our goal is to achieve excellent risk-adjusted returns, every year.

Our composite total return through September 30th was 11.25%. Our equity position achieved a 15.11% total return. The total returns on the S&P 500, DJIA, and Russell 1000 Value Index were 15.92%, 12.12%, and 16.14%.
respectively. Download Commentary

Dear Clients of Kondracki Advisory,

Our composite total return through June 30th was 12.01%. Our equity positions achieved a 15.34% total return. The total returns on the S&P 500, DJIA, and Russell 1000 Value Index were 15.25%, 13.79%, and 17.05%, respectively.

We have maintained an average cash position of approximately 20% this year. Although this decision has held back our total returns relative to the market, our cash position provides us with considerable downside protection, and the ability to be opportunistic buyers – we recently added three new positions to our portfolios, Oracle, Home Depot and Visa. Our conservative approach to investing in equities has been successful, and, I believe, a very prudent approach to growing and protecting our wealth. We have achieved much of the upside of the market, but
with far less risk and greatly reduced volatility.

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Our composite total return for the first quarter was 6.6%. We exceeded the performance of the S&P 500 Index and did so with significantly less investment risk and portfolio volatility. Our equity positions achieved an 8.58% total return. The total returns on the S&P 500, DJIA, and Russell 1000 Value Index were 6.17%, 8.29%, and 11.6%, respectively. Our year-to-date composite total return through April 8th is 8.16% and our equity positions total return is 10.60%. Download Commentary

Our composite total return for 2020 was 11.35%, and our equity position total return was 15.61%. The total returns on the S&P 500, DJIA, and Russell 1000 Value Index were 18.40%, 9.72%, and 2.8%, respectively. Importantly, our portfolios were far less volatile than the market in 2020 – and we significantly outperformed during the extremely challenging first quarter.Download Commentary

Our year-to-date composite total return through September 30th was 4.05%, and our equity position total return was 5.48%. The total returns on the S&P 500, DJIA and Russell 1000 Value Index were 5.57%, -.91%, and -11.58%, respectively. Importantly, our portfolios have been far less volatile than the market this year while still achieving much of the return of the S&P 500 and significantly outperforming our other performance benchmarks. Download PDF

Our year-to-date composite total return through June 30th was -1.99%. The total returns on the S&P 500, DJIA and Russell 1000 Value Index were -3.08%, -8.43%, and -16.26%, respectively.

The stock market’s dramatic rise from the first quarter’s lows seems to be a reaction to unprecedented Federal Reserve asset buying, and its stated commitment to keep interest rates near zero for the foreseeable future in support of financial markets and the economy. The near-term market benefit of this activity has been clear, but the real and sustainable economic benefit of these actions is not so clear. All this, against the backdrop of the coronavirus, and the reaction to the virus, continues to cause great concern and economic hardship for very many hard-working American families and businesses – whose future prospects for good health, wealth and employment are far from certain. Recently, there have been some positive indications on the health, economic and employment fronts as the U.S. economy works to reopen, but the longer term market, societal and economic effects of the Fed’s intervention and the coronavirus, presents us with a higher risk environment indicating a more cautious investment approach is warranted.Download PDF