By Tim Courtney, Chief Investment Officer
Predictions of an impending recession are nearly everywhere these days, with many analysts describing it as the “most anticipated recession in history.”¹ But amid the negative sentiment, it’s important to maintain perspective about how the market works. While we shouldn’t enter 2023 wearing rose-colored glasses, the coming year could very well be productive for investors. Here are some key points to consider about market behavior:
We know the odds of a recession have increased going into next year. There are some concerning conditions right now, with inflation rising to the steepest levels in 40 years,⁵ a struggling labor force and high levels of debt. With so many policy, fiscal and economic changes over the last three years, predicting returns for the next year is especially treacherous. Real returns don’t come without risk, and markets are aware of these challenges as well. As always we want to remain diversified and invested in companies that produce the goods and services we use each day. If you have any questions, please contact your Exencial advisor.
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