We are strong advocates of maintaining a disciplined, long-term approach when it comes to investing, as the data shows that the amount of time in the market yields better results than trying to time the market (correctly and consistently timing the market is nearly impossible to do).
2023 is almost over and we’ve managed to see US equity markets rally over 20%, international developed equities over 15%, and US bonds over 5%. Additionally, US unemployment is below 4%, and close to its 10-year low, and inflation has come down to 3.14% after it peaked at 9.06% in 2022.
HODL, short for Hold On for Dear Life, is a popular term used amongst the cryptocurrency community. Although its origin can be debated, this slang term refers to the strategy of not selling your crypto assets even amid periods of heightened volatility – similar to a traditional buy-and-hold investment strategy.
As proponents of investing for the long-term, Wolf Group Capital Advisors implements a strategic framework within our financial planning and investment management process that we believe increases the possibilities for positive outcomes. Nevertheless, we understand that client situations and market dynamics are ever-evolving and that there is no one-size-fits-all solution.
With 2022 now behind us, not only do we have the opportunity to plan ahead, but also to take a moment to reflect on the year that passed. In the financial markets, as within our personal lives, we must take the good with the bad, adapt to new and changing circumstances, and learn from our mistakes.