Through all the challenges, newfound opportunities, and every high and low we’ve experienced during the last couple of
years, it’s no surprise why we might be striving for more balance. Whether it’s about the markets and global economy
or what’s happening in our local communities, the news we’re hearing on a daily basis has the potential to disrupt the
balance of our lives. But with resilience, perspective, and the support of close connections, we can navigate through it
all and regain our sense of equilibrium. Even after another dizzying year, as 2022 proved to be.
After two years of disruption due to the COVID-19 pandemic, we were searching for some kind of return to normalcy,
while at the same time, still experiencing the aftereffects of the pandemic. Some of those aftereffects included the
imbalances created by the fiscal, monetary, and public health policy put in place to address the pandemic—and the
process of addressing those imbalances has been disorienting at times. If 2022 was about recognizing imbalances that
had built in the economy and starting to address them, we believe 2023 will be about setting ourselves up for what
comes next as the economy and markets find their way back to steadier ground—even if the adjustment period
The Federal Reserve (Fed) spent 2022 aggressively fighting inflation by raising interest rates. In 2023, we expect the Fed
to find that point where it can stop raising rates, as inflation starts to come under control. The Fed’s efforts to control
inflation throughout 2022 pulled interest rates off of extremely low levels that were historically unprecedented. While
that has been painful for bond investors, for the first time in a decade savers can now get an attractive yield, and 2023
will be more focused on how to potentially benefit from this significant shift. Stock market expectations may also see
some realignment heading into 2023. The projections for certain market segments became too high in 2022 following a
decade of low rates and a burst of extraordinary technology adoption. We expect 2023 will likely be more focused on
the opportunities that may emerge from a market sell-off.
LPL Research’s Outlook 2023: Finding Balance is our guide to how the readjustments in the economy and markets may
impact you in the coming year. The disruptions may not be fully resolved and there may be more challenges to come,
but progress toward finding balance is well underway. And when those disruptions hit the market, it can be hard to find
our footing and stay the course. Those are the times when sound financial advice is more valuable than ever, as it helps
us find our center, remember our plan, and stay focused on our goals.
Please contact me if you have any questions.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual.
There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing
involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged
statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment
and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
All data is provided as of December 6, 2022.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their
products or services. LPL Financial doesn’t provide research on individual equities.
All index data from FactSet.
The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL
Financial makes no representation as to its completeness or accuracy.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds
are subject to availability and change in price.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.
Diversification does not protect against market risk.
Past performance does not guarantee future results.
Asset allocation does not ensure a profit or protect against a loss.
For a list of descriptions of the indexes and economic terms referenced, please visit our website at lplresearch.com/definitions.
Tracking #1-05349490 (Exp. 12/23)