December 2022
One area that has experienced major change this year has been the bond space. Bonds normally perform relatively well compared to stocks but experienced their worst year in a century in 2022 due to higher interest rates and the speed at which the Federal Reserve has raised them; however, because they became cheaper, the yield on many bonds became more attractive, too.
Also in 2022, the U.S. gross national debt surpassed $30 trillion, and Jeff says high inflation may be the path of least resistance to reduce that debt. Although nobody knows exactly what 2023 will bring, Jeff guesses it may take some more time for the national debt to come back to a reasonable level and for inflation levels to regulate.
This year has only bolstered Jeff’s confidence in diversification as he sees many alternative investments have generally stayed more resilient than stocks and bonds in this volatile market. He encourages his team and investors to stay open-minded to new asset classes and investments as the landscape around us may continue to change.
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Check out past episodes of The Financial Commute here:
Ep. 14 The Future of Bitcoin and Crypto
Ep. 13 Evaluating Opportunity in Fixed Income
Disclosures:
Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and do not represent the views and opinions held by Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.
