SUMMARY
As of January 18, 2023
- As inflation showed signs of slowing in the fourth quarter, both stocks and bonds recovered some of their losses from previous quarters, and most assets ended the quarter with positive returns.
- Despite a relatively good final quarter, 2022 was one of the worst years in history for markets, including stocks and bonds shedding more than $30 trillion globally and the worst 60/40 portfolio returns since the Global Financial Crisis in 2008.
- Although inflation has started to subside, economic activity has also, and whichever one slows faster will likely determine the severity of a recession, if one occurs.
- The interplay between policymakers and their decisions on fiscal and monetary liquidity has the potential to heavily influence inflation, economic activity, and market performance in 2023.
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This material is provided to advisors by Mount Yale Investment Advisors, LLC and contains market commentary from third-party sources it believes to be reliable. However, Mount Yale has not independently verified or otherwise investigated such information and makes no guarantee as to its accuracy or completeness. In the event any of the assumptions used herein prove not to be true, results may vary substantially. All investments entail risks. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested indirectly. The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. It is not intended to be a client-specific suitability or best interest analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities.