“All will be well. We have, I believe, within us the life-strength and guiding light by which the tormented world around us may find the harbor of safety, after a storm-beaten voyage.” Winston Churchill, 9 November 1954

2022 has been a year most of us would like to forget. Markets brought losses, anxiety, pain and suffering to investors. The horizon currently looks very cloudy, and it feels as if it is hard to find anything to be excited about. The world, in a nutshell, feels grim. War, discord, growing wealth gap, sticky inflation, rising rates, and the specter of a recession with rising unemployment loom over the World. Both bond and stock markets were decisively negative for investors this year, with the broad bond averages looking to log their worst returns in 50+ years. While we recognize these headwinds and feel we are not out of the woods yet, we are not perma-bears for 2023. There will be green shoots and possibilities, and the best investment opportunities come in bear markets, not in bull markets. Buy low, sell high. Easier said than done for most. In 2023 we feel the worst will happen in Q1-Q2, then markets find their footing and we rally out to flat or slightly positive for equities on the year.

Learn More from 2023 Q1 Market Update