January 23, 2023

Episode 104: 1st Quarter 2023 Investment Review & Economic Update (podcast)

First Quarter 2023 Investment Review & Economic Update
Well, we can all agree that the stock market was not pretty in 2022. What is in store for 2023?
Check out the Quarterly Investment Commentary – Q4 2022 from Eastbay Investment Solutions.
We received a couple of email questions recently about the debt ceiling struggle. Mario echoed this the other day on our webinar for clients. Check that out here. The overall consensus is that this is not likely to impact the markets in the long run. It’ll be a lot of sound and fury signifying nothing. It may create some volatility on a day-to-day basis. However, the government isn’t going to default on its debt because there is just too much at stake. We live in a democracy and democracies govern themselves from crisis to crisis. Even if they have to create a crisis. 

The US has been down here before and we let it get worse than this to the point where our debt actually got downgraded and nobody really
seemed to care. Nobody was selling their treasuries or not buying treasuries because it was downgraded.
If there was a real concern we would see the dollar weakening greatly. 
2023 Reasons

2023 Reasons

Check out the Diversification Matters chart we reference in this episode.

There are always things to worry about and things to be positive about.  We’re not sure that there’s a recession coming. We may see companies actually do better than expected and the market could recover quickly. We really don’t know and to try to guess one way or the other would be just that – guessing. This is why market timing doesn’t work.

We usually talk about surprises in terms of being bad for the market, but the flip side of that is the surprise is a good thing and there is a scenario out there where the fed gets it right. 

So there’s just no telling where we’re at and what’s going to happen. It’s a matter of being a long-term investor and not worrying about what’s going to happen six months from now.

About Shotwell Rutter Baer

Shotwell Rutter Baer is proud to be an independent, fee-only registered investment advisory firm. This means that we are only compensated by our clients for our knowledge and guidance — not from commissions by selling financial products. Our only motivation is to help you achieve financial freedom and peace of mind. By structuring our business this way we believe that many of the conflicts of interest that plague the financial services industry are eliminated. We work for our clients, period.

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