Through all the challenges, newfound opportunities, and highs and lows of 2022, we are striving to find and create more balance. Navigating the markets and global economy this year has reminded us that resilience, perspective, and the support of close connections are the weights we need to maintain our sense of equilibrium in unusual times.
We entered 2022 somewhat expecting a return to normalcy. Yet COVID-19’s effects and aftereffects took us on another course. Effects of the pandemic reverberated through the economy and public policy, especially monetary and fiscal policy. While we hope the economy and markets soon find sturdier ground, we expect the economic corrections and rebalances of 2022 to at-least-initially continue into 2023.
The Federal Reserve (Fed) spent 2022 aggressively fighting inflation by raising interest rates. In 2023, as inflation starts to come under control, we expect the Fed to find that point where it can stop raising rates. The Fed’s efforts to control inflation throughout 2022 pulled interest rates off historically unprecedented low levels. While that sharp increase has been painful for bond investors, it’s also brought the first time in a decade that savers can get an attractive yield. 2023 will likely bring more opportunities to capitalize on this significant shift. Stock market expectations may also see some realignment heading into 2023. The projections for certain market segments became too high in 2022 following a decade of low rates and a burst of extraordinary technology adoption. We expect 2023 will likely be more focused on opportunities emerging from a market sell-off.
LPL Research’s Outlook 2023: Finding Balance is our guide to how the readjustments in the economy and markets may impact you in the coming year. The disruptions may not be fully resolved and there may be more challenges to come, but progress toward finding balance is underway. And when those disruptions hit the market, it can be hard to find footing and stay the course. Reach out today to discuss your financial plans and how to best situate yourself for 2023. These are the times sound financial advice is more valuable than ever, as it helps us find our center, remember our plan, and stay focused on our goals.
Mark Stephan & your Arazon Team
View the digital version: https://view.ceros.com/lpl/outlook2023/p/1
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please read the full OUTLOOK 2023: Finding Balance publication for additional description and disclosure. This research material has been prepared by LPL Financial LLC.
Tracking # 1-05345338 (Exp. 12/23)