Happy 2023!

I hope you had a lovely holiday season and found time to relax, rejuvenate, and set new goals for 2023.

The market volatility of 2022 was a roller coaster ride with enough ups, downs, twists, and turns to keep investors on their toes. While our clients at WSG didn’t completely escape unscathed, our goal has been to keep our clients informed of the ongoing market volatility and the changes we have made in portfolios accordingly. Managing downside risk and participating in the upside has always been my goal, and I feel as though it was achieved during this bout of volatility the world has experienced.

All of that in mind, the image above is a good way to put the volatility into perspective.

As you can see, the average bull market lasts roughly 4.4 years and comes in with a cumulative total return of 154.9%. The average bear market, on the other hand, lasts 11.3 months, with a total cumulative loss of -32.1%.

There’s a LOT more blue than yellow.

While they are painful in the moment, Bear markets are a normal part of the investing process. For clients that have at least a 5-year time horizon, this is likely just a bump in the road. There has never ben a time in history when markets were lower at the end of a 5-year period versus the beginning!

So, while we may still be in the painful yellow portion of the image above, history has shown that the blue will come. And when it does, we have positioned ourselves to take advantage of the potential value we see in the market.

Here’s to a great 2023 filled with health, wealth, and happiness!

I am interested in your thoughts, comments, and questions!

Respectfully,

Brittany N. Jarocki, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.  Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.