Well, that was fun. As the book is now closed on the year 2022 I really cannot say I am that disappointed. And I would think most investors would not want to experience that again either. Historic interest rate increases, price inflation almost everywhere, wars, stocks getting battered and a crushing bond market downturn. Exit stage left!
Let us just move on to a bigger, better bull market in 2023. Honestly, I want to see that. But for the better part of 20 years and numerous administrations pumping money into our markets, coupled with very, very low rates for years, it seems the “party’s over” and the credit system is now reverting back to the mean. That being said, we do not believe the world is ending and that the markets will be in a proverbial downturn for years and years. We think there may be a little more pain ahead and want to share 3 suggestions that may help alleviate some of the pain and help mitigate some of the risk you may face.
Number one, communicate and rely on your investment professional. Let them help you navigate the situation. The easy answer is, “I don’t need help” or, “I could have done better myself”. Well, maybe? Are you a “modern day warrior” or an “old school worrier”? If you’re the latter, call the pros, breathe out and life should be ok. Plus, you’ll save money on antacids.
Number two, diversify. There is more to the investment game than your “fave” tech stock that is getting hammered right now. Some alternative assets may be a fit for you but its good just to look at your money like its new every day. Just because you bought something a year ago does not mean it is still viable in today’s market. As they say, “the big money, it don’t come easy”.
Number three, engage! Because it is your money and the humility and thanks that goes with it demands you do not turn your back on it. Make prudent investment choices based on proven data, mathematics and thoughtful research and it will work out. “For the meek shall inherit the earth”. Here's to a great 2023!
Posted January 03, 2023
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