MANAGINGThe Market

By Michael Hull, , CPFA, CRPC®, Founding Partner | Senior Wealth Advisor: michael@cedargapwealth.com

record high, while the tech-heavy Nasdaq tumbled 33.1%.

Putting the misery of 2022 into the rear-view mirror, we’ll look ahead to 2023 and the return of the Bull for stocks and bonds. Will it prove to offer the best buying opportunities in a decade?

and don’t forget interest bearing cash.

6. International equity markets, particularly Emerging Markets, could be the hidden gem this year as rates and the dollar peak. A full China opening would be very bullish. We’ll keep a keen eye on these markets.

In 2022, overall returns for bonds and stocks reached Bear market levels. But don’t forget: Bears do hibernate, and Bulls do run. And both will happen again.

It was the worst year for the stock market since 2008, with volatility to match: The S&P 500 saw 46 daily moves of 2% or more in either direction, the most since the 2008-09 financial crisis. All three of the major averages suffered their worst year since 2008 and snapped a three-year win streak. The Dow Jones fared the best of the indexes in 2022, down about 8.8%. The S&P 500 dropped 19.4%, and is more than 20% below its

According to Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, these 6 points give hope and reason to a return of the Bull market.

1. In equities, leadership should reside in Value, particularly in the commodity-sensitive sectors, Small Caps, and Dividends.

2. We would maintain high-quality positions until the Bull market is confirmed.

3. Long-duration assets should also perform well both in stocks and bonds.

4. Fixed income across the board should have a strong year in 2023 as interest rates peak along with inflation. Long-duration Treasuries could surprise with a 20% return.

5. The return of a 60/40 allocation

Optimism for 2023 isn’t wishful thinking. It’s based on all the evidence noted above. But still, economic planets must align, players (like Fed Chair Powell) must remain predictable, and unforeseen global activities (like pandemics, lockdowns, continued supply shocks, and invasions) must not materialize. This way, the Bull will gain steam, and the rally will continue in earnest.

To be financially successful, it takes Attitude, Aptitude and Ability from both you and your financial team. Your priorities should be heard, your goals understood, and a clear and concise plan should be built to help you achieve your goals.

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