Welcome to our November 2022 Market Update Video…first and foremost:
So how are you feeling about the markets?! What a difference a month makes! October saw stocks rise a whopping 8% as seen in the S&P 500.1
For the time being, rising interest rates have backed off and we see the 10-year U.S. Treasury finish the month of October at 4.03%.2
If you’ve been with me for a while it comes as no surprise that I believe debt markets are largely driving the price action of stocks. For example, I feel if yields rise, stocks fall and if yields decline, stocks rally. Stocks have recovered some of the last years’ declines, rising almost 11% from the lows.3
So what do we do now? Asset allocation remains the cornerstone of our investment philosophy as opposed to trying to time the market. I feel there is enough data that shows time in the markets matter more than timing. Over the past 91 years, for instance show us that almost every 10-year period in the market has been positive.4
In my opinion, there are a couple simple benefits to a poor market. One is harvesting tax losses, to possibly be used against gains in the future. A second portfolio opportunity is to upgrade the quality of investments at discounted prices.
Thank you for your confidence in what we do and please don’t hesitate to reach out with any questions or comments. Enjoy a great Thanksgiving!
Disclaimers & Sources
1 Source: Thomson ONE Reuters, 11/2/2022, S&P 500
2 Source: CNBC, 10-Year US Treasury, 10/31/2022
3 Source: Thomson ONE Reuters, 11/2/2022, S&P 500
4 Source: Capital Group, Time not Timing is what Matters
Content in this material is for general information only and 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.
The opinions expressed in this material do not necessarily reflect the views of LPL Financial.
Asset allocation does not ensure a profit or protect against a loss.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
The Standard & Poor’s 500 Index 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.