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By The Lesko Financial Services Team
Don’t Forget! You Saw it in the
Adverti$$er
February 2023 #15283 Page #90
First Quarter Brings Hints of Later-Year Move Toward Recovery
T
he start of a new quarter and a new year bring with them a cautious glimmer of optimism that the economy is finally poised to begin a slow turn-around toward a gradual recovery.
To be sure, many challenges remain for households that have been weathering inflation for more than 18 months. But prices have been trending downward since hitting a high in June, with November’s inflation figures coming in at a better-than-expected 7.1% and December’s at 6.5%, in line with estimates. This trend gives rise to hopes that inflation may have peaked. Supply chain problems are being slowly worked out and while retailers are still facing sporadic shortages, the word “normal” has been finding its way back into forecasts for 2023 as industries find and deploy strategic solutions. The U.S. has begun to tackle semiconductor shortfalls with new legislation and new chip plants. And lingering problems have been helped by what appears to be a more tempered approach on the part of Chinese authorities dealing with outbreaks of COVID in certain provinces. Despite higher retail prices, reports show that holiday spending was robust as consumers endeavored to make up for the lockdown years with more spending on gifts, entertainment, and travel. Consumers still seem eager to spend, but with fewer excess cash reserves than in the immediate post-pandemic months. Additional positive news for consumers and household budgets is that prices at the gas pump have been edging downward as demand decreases during cold-weather months.
Probable headwinds Investors remain jittery as uncertainty persists on Wall Street. The S&P 500 closed out 2022, its worst calendar year performance since 2008, down almost 20%. Many stock market forecasts for 2023 foresee moderate improvement with investors advised to be patient, review risk, and think long-term. And perhaps to take advantage of any opportunities that may arise along the way while still maintaining a solid investing approach based on their short, medium, and long-range goals. PHONE: 800-289-5627
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