What can we expect from the financial markets in 2023? Obviously 2022 was not a great year for investors. Today, Alex gives us a recap of last year, and Ed explains why the team at Birch Run Financial is optimistic heading in to the new year.
Alex recaps many of the difference indices' performance in 2022, including the S&P 500, the Bloomberg US Aggregate Bond index, and more - courtesy of FactSet.
Yes, the financial media are right when they talk about 2022 being the worst year since the 2008-2009 financial crisis. But remember, the job of the financial media is to keep us engaged. Alex digs a little deeper to find we are not where we were 15 years ago. In fact, the three year period from 2020-2022 looks much better than a similar period during the financial crisis.
Ed is here to look forward to 2023. And while of course nobody can predict the market, we could be seeing some things to cause optimism. Bond yields are reasonable, and as clients approach retirement, bonds are often a bigger part of their overall investment strategy. Also, Price to Earnings, or P/E ratios, are looking better. Ed explains what these numbers represent, and why this is a good thing.
We also talk about the dreaded "R word" - recession. How likely are we to see one in 2023? Well, depends on who you ask. But it's important to remember that recessions are part of the normal economic cycle, and a good financial plan accounts for them to happen.
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536