Year End Review: 2022 | AWM Insights #138
AWM Insights Financial and Investment News
English - January 06, 2023 21:30 - 17 minutes - 15.6 MBInvesting Business News Business News pro athlete financial advisor athlete wealth management finance athlete financial advisor wealth management investing Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
2022 has been a rough year for investors and brought in a long list of exceptional events. Meltdowns in SPAC’s and Crypto, an energy crunch, rising interest rates, and an unprecedented war overseas lead to market reactions and financial turbulence. Most Equity and Bond indices finished the year in the red. The S&P 500 also snapped a 3-year winning streak of double-digit annual returns.
Losses are never ideal, but it is important to reference history and understand how market performance affects your portfolio and overall financial well-being.
The S&P 500 has a “record” of 71-26. Over the past 97 calendar years, 71 have been years with positive returns. The average return during a positive year was 21% while the average return during a negative year was -13%.
The skew and magnitude of returns are in the favor of the investor and working with a team that properly positions your portfolio to capture the upside while also protecting your priorities is essential to both participate in the market and achieve your goals.
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EPISODE HIGHLIGHTS
0:00 Intro1:01 Year-End Review1:29 How accurate were the predictions for 2022 returns from the “Experts”2:13 Emotional responses to volatile markets2:38 Notable events in 20224:43 Has a recession been declared5:44 How are we positioning our portfolios for the future given the turbulence7:06 Controlling what we can control, and how we used volatility to our advantage with Tax Loss Harvesting8:14 Interest Rates movements and their impacts on your financial structure11:08 How interest rates affect Equity markets11:53 Why paychecks during downturns are a huge positive12:25 Markets pivoting on new information and fed stance13:25 Key Takeaway 1: Don’t let short-term news derail your long-term plan14:03 Key Takeaway 2: Is your fixed income allocation working in the right way for you?14:35 Key Takeaway 3: Global Diversification15:01 Key Takeaway 4: Markets are forward-looking, and they consider investor sentiment15:40 Predictions for 202316:55 Wrap Up