Financial
Focus

Every year around this time, as the calendar turns to the new year, investors tend to have a lot of questions on their minds. What happened in the financial markets last year (i.e., in 2023)?

Investors pursuing the “perfect portfolio” is an age-old endeavor. Obtaining the perfect portfolio is like attaining perfect health—there really is no such thing. You can embrace behaviors to maximize your health such as exercising, eating right, getting plenty of sleep, drinking a lot of water, staying away from toxins, etc.

The first half of the year was surprising for many investors. The markets saw a return to a pro-growth environment, similar to what occurred coming out of the COVID-19 crisis. This particular market upsweep was viewed as quite narrow, with limited breadth.

As we approach the end of May and beginning of June, we are getting ever closer to what has been referred to as the “X-Date.” What is the X-Date, you ask? That is the day where it is projected that the government will no longer be able to pay its bills.

With the recent Silicon Valley Bank failure dominating headlines over the past couple weeks we would like to share our views on what happened, the potential for contagion risk (which we view as unlikely) and some additional implications for financial markets.

Embrace the Fog—2023, A chance for upside surprise? Every calendar year, as one year ends and another begins, we receive a deluge of financial forecasts and predictions for the new year. When looking back on these predictions 12 months later, they tend to be wildly off base and, in the vast majority of times, flat out wrong.

As many of us know, sometimes it is difficult to bridge theory and practice. In theory, just about everything is relatively easy. In practice, though, we find that things that appear to be quite simple, like eating a healthy diet, exercising consistently, saving money and making time for loved ones can prove to be quite difficult.

What Should I Do Now? Many wealth management professionals tend to get this question from clients. While this question is quite common among the average market participant, we view it as somewhat superficial. It is more appropriate to understand your goals and risk tolerance and then set the appropriate level of risk within your portfolio.

College expenses can be daunting for any parent. If you have a child entering college today, the average annual cost can be around $30,000 for in-state public colleges, $50,000 for out of state public colleges, or up to $80,000 for private institutions.

Inflation reaches a four-decade high, recession risks continue to increase, the S&P 500 is now in bear market territory, the Consumer Confidence Index hits an all-time low. It’s understandable to get nervous, anxious, and even fearful.