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Q4-2022-Quarterly-Perspectives-PCS-Letter-1.pdf
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🔗 Source: appletonpartners.com
📊 Size: 288 KB
👤 Author: Jill Lombard Timlin
⬇️ Downloads: 97

Summary

2022 was marked by high inflation, with a June YoY CPI print of +9.1%, and the Federal Reserve responded with rapid rate hikes, increasing the Fed Funds rate to a peak of 5.1%. This led to volatility in the equity markets, with 121 trading days producing greater than +/- 1% S&P 500 returns, and significant losses in stocks and bonds. A 60/40 balanced strategy suffered its second-worst year since 1976. Despite this, the value of diversified, risk-focused asset allocation remains, and today's more modest equity valuations and higher bond yields suggest a probability of more attractive future returns. Investors should consider tax management strategies, such as tax loss harvesting, and review their debt to take advantage of higher interest rates. A disciplined approach to investing, including personalized asset allocation and portfolio diversification, can help mitigate risk and achieve long-term financial goals.

Description

2022 was marked by high inflation, with a June YoY CPI print of +9.1%, and the Federal Reserve responded with rapid rate hikes, increasing the Fed Funds rate...

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  • File Format: PDF
  • File Size: 288 KB
  • Pages: 2
  • Language: EN
  • Author: Jill Lombard Timlin
  • Total Downloads: 97
  • Last Updated: 9 hours ago

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