Year end thoughts while keeping it in perspective 2023

Happy New Year to our wonderful clients,

I think it's safe to say that we all are thankful this volatile year is behind us. Besides the terrible stock & bond markets, we've had to deal with some of the worst inflation in 40 years. This has been a real financial tax on consumers costing all of us so much money to purchase things. And, of course, Covid is still here. No one has a feel- good story as all seems to be crashing down on us.

In regards to stock and bond markets. Many individual stocks that we all know very well were down between -40% to -70%, especially in the technology sector, with the broader S&P 500 having the 4th worse year since WW2. And, the US Government bond market was not left out having the worst return year in almost 100 years. Down close to -18%.

I do realize it has been an awful year in so many ways. But, let's keep everything in perspective. It's just one year. I believe our portfolios have held up quite well, considering the Ukraine war, the rapid raising of interest rates by the Federal Reserve, massive inflation, China shutting down every 2 weeks and of course Covid still hanging around.

We will continue to work very hard for you and your families in trying to protect and set our portfolio up for growth over the next several years. With any luck, the Federal Reserve may be done raising interest rates by the end of the 2nd quarter of 2023, in conjunction with earnings estimate revisions which may bring down stock prices to even more attractive valuations. This may set up a nice second half to the year of 2023. We shall see.

Thank you for your faith and patience in allowing Cangelosi Wealth Management the privilege of helping you all with your financial planning needs, as well as leaving a legacy for your loved ones.

Happy New Year and stay safe. We shall see many of you within the 1st quarter of 2023 for your annual reviews.

Frank Cangelosi
Wealth Manager and Financial Advisor

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.