The beginning of a calendar year is often the time when the previous year’s reflections transition to a new year’s hopes. Given the market’s continued instability during 2022 and a resulting tough period for stock and bond prices, everyone is hoping for a fresh start.
While falling, inflation remains high, and a recession is likely to occur this year in America. Meanwhile, deteriorating U.S. relations with China and the ongoing Russia-Ukraine conflict add risks for our economy and markets. Even though it feels very difficult to persevere in times like these, we believe patient, well positioned investors will continue to be rewarded over the long term. We apologize for missing the investment on eggs!
We don’t expect markets to stabilize until the middle of 2023. As inflation continues to fall, the Fed should look to continue easing rate raises. Corporate America and consumers seem to be in a good financial position. Ukraine has fought a good fight, but the tragic war continues. Any good news about falling inflation, resilient corporate profits or less conflict in Ukraine could be positive catalysts for markets as the year progresses.
Regardless of what’s going on in the markets and the world, it's our mission to provide you with consistent financial advice and high-quality investments. We continue to evaluate the ever-changing economy, markets, and new legislation concerning your finances. We look forward to meeting with you this year and please reach out with any questions. Thank you for your business and confidence.