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As we continue to work diligently to keep you posted, below, you will find a conversation with David Fingold from BNN and a podcast that discusses 2022 and what to expect in 2023 by the chief economist from one of our key partner's Dynamic Funds.

I know many of you are still very concerned, but hopefully, hearing not just from me and not just from the often mainly negative medial outlets will give you a deeper perspective.

David Fingold on BNN Bloomberg Market Call: Market Outlook. David from Dynamic Funds discusses his outlook for the markets.

To kick off the start of the year, the Chief Investment Strategist Myles Zyblock at Dynamic Funds recaps the market and economic events of 2022

He then dives into the opportunities, challenges, and surprises that lie ahead in 2023.

Am not a fan of new year's resolutions, as historically they don't get held up past January, but what type of wisdom can I share to guide you on a path towards an incredible year? Here are some ideas that I use that I do find extremely useful.

  1. Select a theme word for the year, as an example: growth. Then you can filter all your activities to see if they are in line with your achieving growth.

  2. Perhaps reflect on all areas of your life, from your relationships to money, to self-care, the experiences you had in life and what you want to have, your health, your business and your career and see journal what you wish to see achieved in each area. Start with what does success look like in that area by the end of 2023? Then work backwards, and set up daily, weekly and monthly actions to get you towards that goal.

I hope those tips will assist you in setting up for a healthy, prosperous and fulfilling year.

As for the market, here are a few comments as to what to expect in 2023.

As difficult as 2022 has been with rate hikes, high inflation and market swings, the worst is now probably behind us and the conditions created for a much more compelling investing environment going forward:

Central bank policy, which operates with a lag, is likely to weigh on the economy into 2023

  • Equity valuations have normalized, and the potential returns of several asset classes offer attractive opportunities

  • Corporate earnings, in general, have remained resilient, and supply chains are finally moving again.

Regardless of where we are in the market cycle, it’s important to take a disciplined approach to invest and stay focused on your long-term goals. This has been a huge part our commitment always and especially during markets as we have had.

Here are my key comments and reminders:

  • keep in mind in most of your portfolios, you own good quality businesses with healthy balance sheets and long-term track records maneuvering many markets

  • market pullbacks are never permanent, and even if the economies take time to re-adjust, the businesses you own will come out on top as they have time and time again in the past

  • owning quality businesses is one of the key ways to grow wealth over time as it ensures we can grow 3 or more % above inflation every year

Few additional comments on current markets from Myles Zyblock, chief Investment Strategies from Dynamic Funds:

Expectations are for Rates to Peak in the First Half of 2023

  • The futures market has the Fed funds rate peaking at about 5% during the second quarter of 2023. Were the Fed to lift interest rates by 0.75% at their meeting this week, it would imply about another 100-125 basis points of monetary policy tightening to follow before levelling off.

The Labor Market Remains Strong

  • In the latest labor market report, the unemployment rate declined from 3.7% to 3.5% with the help of 263,000 new jobs. For the inflation objective to be achieved, the Federal Reserve believes it will need some help by way of a softer labor market

  • An unemployment rate of 3.5% reflects one of the strongest labor market environments since the 1960s.

Don’t Read too Much into Immediate Market Reaction

  • Sometimes equities rallied on "Fed announcement day" and sometimes they declined. A similar story holds for bond yields.

  • The key for investors is not so much what the Fed does on a given day, rather the read on the expected longer-term trajectory for financial conditions, inflation, and the health of the economy. At this stage, inflation has remained stubbornly high leaving the Fed with little wiggle room to take their foot off the brakes.

The market has faced many economic downturns over time.

Historically, despite many periods of increased volatility, markets have remained resilient.

Recessions, while unsettling, are usually short-lived

The good times (economic expansion) usually last much longer than the bad times (economic recession)

Ultimately, the ride up is usually bigger than the ride down

Many of the strongest returns in the markets occur in the period immediately following a sharp decline. Those who exit the markets, even for a short while, risk missing great opportunities when the markets recover.

Bottom line: Keep your long-term plan in mind, work with an experienced planner and tune out the notice.

Third party publications are not prepared or approved by Keybase Financial Group Inc.  The opinions, estimates and projections contained in the publication are those of the author as of the date indicated and are subject to change without notice.  Keybase Financial Group Inc. makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any loss arising from any use of or reliance on the report or its contents.  The provision of this publication is not to be construed as an offer to sell or  a solicitation for or an offer to buy any securities.

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