![]() ![]() This Research material was prepared by LPL Financial, LLC. The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. LPL Financial doesn’t provide research on individual equities. All performance referenced is historical and is no guarantee of future results.Īll data is provided as of January 4, 2023.Īny company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. ![]() Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. Indexes are unmanaged statistical composites and cannot be invested into directly. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Any economic forecasts set forth may not develop as predicted and are subject to change. Investing involves risks including possible loss of principal. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. Please contact me if you have any questions, my email is: phone number is 50 and to schedule a time that works for both of us: While it is always a good idea to have a plan for stormy weather, history tells us that the winds may be a bit more in our favor this year. This leads us to believe that 2023 is unlikely to be a repeat of the year just passed. The volatile market in 2022 has lowered stock valuations relative to their earnings, suggesting many of the above concerns may have already been priced in. But these challenges are offset by still-strong consumer and corporate balance sheets and the likelihood that the Federal Reserve will stop hiking interest rates in the first half of 2023, which may help give stock prices a boost. relations with China and the ongoing Russia-Ukraine conflict add risks for the economy and markets. Corporate profit growth is expected to be flat, and consumer spending growth should also slow. While falling, inflation remains high, and a mild U.S. We remain mindful that the coming year will not be without fundamental challenges. So while we can’t rely on history repeating itself, it does give us a reason for optimism. ![]() Those occasions occurred during the Great Depression, World War II, the 1970s, and the dot.com bubble years (early 2000s)-periods perhaps more economically dismal than what we face today. If we look at all calendar years following negative S&P 500 Index outcomes, the S&P 500 Index had back-to-back negative years in only four instances since 1930. Stocks also typically perform well when two parties share power in Washington, D.C., and November’s election ushered in a Republican majority in the House, balancing the power once again. Not only have stocks been positive in those cases, but the Index has been higher by 14.7% on average. Since 1950, there have been 18 mid-term election years, and in each instance, the S&P 500 Index has been higher in the subsequent year. This is especially the case following a mid-term election year. While each new year brings its own unique circumstances–and having a well-balanced plan helps–more often than not, bad market years are followed by good ones. And history gives us cause for optimism following a difficult year. Given the market’s continued instability during 2022 and a resulting tough period for stock and bond prices, everyone is hoping for a fresh start. The beginning of a calendar year is often the time when the previous year’s reflections transition to a new year’s hopes. We wish you a happy New Year and hope you were able to close out 2022 with friends and family.
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