Justin’s Market Musings | December 14, 2022

As we rapidly approach the end of a frustrating year in the financial markets (and some would say, for humankind in general), it feels like a great time to just remind everyone that historically markets have gone up over time. That’s the way it has always been, and the way we believe it will continue to be. Not every year is higher. Sometimes markets go down. Sometimes they go down a lot. As volatile as 2022 has been, the overall results haven’t been in the “terrible” camp.

Of course, there is an important Inflation report this week along with a Federal Reserve announcement on interest rates. You can bet on a lot of volatility as a result. Volatility can be up or down by the way…sometimes up AND down on the same day. We’d expect things to get a bit more relaxed as we hit the last 2 weeks of the year, as historically, it is a pretty good period for markets. But, we have to get through this week first.

We’d expect 2023 to continue to frustrate investors. Let’s face it, the world is still trying to normalize from the pandemic and more importantly, pandemic-related fiscal/monetary policy. And, until we’ve vanquished this pesky inflation and successfully reset our economic cycle, things will be uncertain and a bit uncomfortable. But, again, that’s why we have to focus on the long term. Paying too much attention to the daily/monthly gyrations can be maddening. Speaking of maddening, I ran across the cartoon below that I thought was perfect. I recall this was printed many years ago, but the (somewhat humorous) point remains: Markets can be highly volatile, irrational, and confusing in the short term. Unless you like volatility, irrationality, and confusion, it is best to just ignore it.

More importantly, the holidays give us a great opportunity to spend time with friends and family, to “unplug” a little from the daily grind, and to reflect back on the last few years, which really have been kind of unprecedented. I for one can’t wait to watch my UGA Bulldogs compete for another shot at a National Championship. I know we have some Wolverines and Buckeyes who are reading this as well. Best of luck to your teams as well…even the Hornfrogs, if you’re out there!

As always, call us if you need us. But don’t worry too much about the markets. We’ve been here before. We’ll be here again, eventually. But, in the end, history suggests, we’ll be ok.

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. Economic forecasts set forth may not develop as predicted.
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