This month, Jason gives a recap of 2022, a 2023 outlook and discusses portfolio positioning.
2022 RECAP
Russia invaded Ukraine, created supply chain crisis and oil prices spike
China zero Covid policy continues to effect supply chain
Highest inflation since 1980’s
Fed tightens economy with unprecedented rate hikes
Cyclical stocks struggle with higher rates
2023 EXPECTATIONS
Economic forecasts suggest we will have a recession
Most leading indicators are negative
Appears to it will be mild as consumption and services remain strong
Expect inflation continuing to ease
Corporate earnings may struggle in first half of the year
Unemployment likely ticks a bit higher
PORTFOLIO POSITIONING
High Quality: Companies with strong balance sheets, free cash flows, dividends
Bonds are attractive as they are offering highest
yields in decades
Consider adding buffers