5 Key Insights for 2023 – Chartbook

Published: January 4, 2023

Happy New Year!

I trust this message finds you well after a nice holiday break with your loved ones. In keeping with our promise of increasing our outreach to you, we present the first edition of the RetireRight Chartbook! I will send a new series of charts at the front of every month with the goal of providing quick, timely, and insightful information on the markets and the economy.

As investors, 2022 proved to be a challenging year. The markets fell into bear market territory and experienced the worst annual performance since 2008. Interest rates swung wildly with the 10-year Treasury yield jumping from 1.51% at the start of the year to a high of 4.24%, before ending at 3.88%. This mirrored inflation as the Consumer Price Index climbed to a 40-year high of 9.1% in September. Along the way, a myriad of other events also impacted the markets. Events such as the war in Ukraine and China's zero-Covid policy, affected everything from oil prices to the U.S. dollar.

These market swings can cause whiplash for even the most experienced investors. Much of what drove the markets last year was the result of the pandemic and its rapid recovery over the past three years. Just as an earthquake can cause a tsunami, the sudden drop and resurgence in business and consumer demand, fiscal and monetary stimulus, and global supply chain capacity can cause shock waves across the financial system. While they do cause immediate damage, even the largest shocks eventually settle.

Despite these historic shifts in the economy and markets over the past year, the principles of long-term investing remain unchanged. Staying disciplined, diversified and focused on longer time horizons is more important than ever. For some, it may feel as if markets can't catch a break, but this is how it felt in March of 2020 before the rapid recovery, in 2008 before a decade-long expansion, and during countless other times across history. Keeping your footing as markets rock back and forth is still the best way to achieve your financial goals.

Below, we review five insights from the past year that can help you maintain a proper long-term perspective in 2023.

-Christopher Cannon, MSAPM, CFP®, RICP®, AIF®

RICP conferred by The American College.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Securities offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC, (Kestra AS) an affiliate of Kestra IS. Retire Right Financial Planning is not affiliated with Kestra IS or Kestra AS.  Investor Disclosures:  https://www.kestrafinancial.com/disclosures