A Warm Welcome to 2023

A Warm Welcome to 2023

January 03, 2023

Happy New Year to you!

It’s been quite the 2022, and we are ready for 2023 at our firm.  You have all been so great during our transition to Valley Wealth Management.  We are grateful to have you as clients.  We’d like to announce a location change that’s on the horizon.  We are extremely excited to be moving to a new office in February!  Once the location is registered with LPL, we'll be allowed to disclose the address.  Stay tuned!  This location is extremely convenient located on a frontage road nearest the 9th Ave Highway 41 exit.  This new space will better accommodate your ability to walk in and see Jenny and Amber right up front, fill out paperwork or just swing by to say hi and grab a coffee.  It’s not open yet, but when it is, we will also send out letters and remind you when you call.

Now back to the markets…  December played out in a way that was fairly expected.  We had two great up months with October and November.  It would’ve been difficult for this market to keep up with that pace.

Here were the major talking points:

  1. China is relaxing their Zero-Covid policy. This is excellent news for manufacturers around the world as many are still waiting on various widgets for their products.
  2. Consumer Confidence is up a bit with Inflation Expectations down a bit. If this type of consumer psychology holds, we could see the Fed slow (or even reverse) its tightening, which would be a boon for the markets.
  3. The S&P 500 hasn’t done much for the last six months besides swing and come right back again. A six month chart looks like there’s been a ton of activity, but in reality, it’s only down by around 1% since the end of June.  Some forecasts are saying this could be a sign that our Bear Market is coming to an end.  The Bloomberg US Bond Index was down almost 4% in the same period.
  4. The inverse relationship that Conservative to Moderate investors are used to seeing didn’t happen in 2022. It was a very difficult year for those already retired or close to retirement.  I’ve never seen the bond market act like this.  In fact, the Bloomberg Aggregate Bond Index has this as the worst year for bonds since the index’s inception dating back to 1976!
  5. 2022 ended up being the worst year for the S&P 500 since 2008.

With both the stock and bond markets having down years, it was difficult for all investors ranging from Conservative to Aggressive.  With some good policymaker interest rate and trade decisions, 2023 could end up being a banner year.  Of course, only time will tell.

All the best to you and any New Year’s Resolutions you started!

Larry Mroczkowski


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. All indices are unmanaged and may not be invested into directly.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risks, including the loss of principal.