Wealth Planning

Looking Back on the Themes That Shaped Wealth Management in 2022

There has been no shortage of market drama this year, and market uncertainty abounds as we enter 2023.

There has been no shortage of market drama this year, and market uncertainty abounds as we enter 2023.

Through it all, our team at CD Wealth Management continued to send market reminders: This, too, will pass. Focus on the future. Don’t try to time the market. Keep emotions out of market decisions. Stay disciplined.

As with every year, different market themes arose from month to month — and some of those themes occasionally repeated themselves, as history often does.

• After more than 2½ years, COVID continues to play havoc on the global economy. For most of 2022, China continued strict lockdowns and only recently has agreed to ease restrictions after protests from its citizens.  

• Russia’s invasion of Ukraine, a war that seems to have no end, brings a tragic loss of lives, an energy crisis in Europe — and maybe the end of Putin’s reign?

• We’re experiencing a bear market. The only thing that goes up is correlations – inflation and higher energy prices, with stocks and bonds both declining.

• Are we in a period of stagflation, deflation or inflation, and what does this all mean?

• The 10-year Treasury note has logged its worst performance in 234 years! The Fed raised rates seven times in 2022, and the Fed funds rate rose from 0 to 4.25%. The entire yield curve is now inverted, with even the 1-month Treasury yielding more than the 10-year Treasury.

• Are we in a recession or not? The Wall Street Journal reports that 90% of investors expect the U.S. to enter a recession before the end of 2023. Everybody seems to agree a recession is coming, but nobody can say for sure.

• The bubble burst on the speculation in the market — crypto, SPACs, NFTs — and high-growth stocks have been decimated as changing risk preferences reined in speculation.

• How have stocks performed since the midterm elections? Historically, a split Congress and White House is the best-case scenario for the markets.

• Tax loss harvesting remains a prudent portfolio management strategy, not just for the end of the year but throughout the year as well — especially in a year like 2022.

Our No. 1 priority is to take care of our clients, and we are proud of the work we have done this year. We wish you a very happy holiday season!

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This material contains an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources.

Using diversification as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss of principal due to changing market conditions.

Past performance is not a guarantee of future results.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

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. CD Wealth Management and Bluespring Wealth Partners LLC* are affiliates of Kestra IS and Kestra AS.  Investor Disclosures: https://bit.ly/KF-Disclosures

*Bluespring Wealth Partners, LLC acquires and supports high quality investment adviser and wealth management companies throughout the United States.

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