It was a pleasure to host our first in-person, Focused Wealth Management “Firm, Economic and Market Update” post-Covid this past November.

We are now excited to share with our virtual audience Focused Wealth Management’s “report card” for 2022 and annual market forecast for 2023.

2022 saw stocks and bonds both decline for each of the first three quarters. This has not been seen in 50 years. The rise in interest rates and compression in equity valuations stem from the worst inflation in 40 years, even as earnings estimates improved for the first 6 months of the year. High Price to Earnings (PE) stocks struggled mightily as interest rates went up during the past 12 months. Volatility was at historic highs for both stocks and bonds. 

Perhaps the single biggest change to the financial markets in 2022 was the transition from quantitative easing (low interest rates) to quantitative tightening (high interest rates). The era of free money is over. Interest expense will inevitably consume a greater share of income.

In the attached video, we run down our 2022 forecast, our “report card” (05:00). In line with our long-term average, out of 13 predictions we made this year, we saw 11.5 come true.

As we look to 2023 the most important question is will we have a recession? The answer to us is actually quite straightforward: if inflation starts to ease as economic activity slows, then no. Interest rates will stop rising and recessions, where and if they occur, will likely be modest. If inflation does not slow, all bets are off.

Our Team at Focused Wealth Management is in a unique position to provide financial clarity to our clients at the most critical of times. We value the opportunity to provide guidance, advice, and support during these volatile markets and are proud to meet our clients’ financial goals.

Best regards,

Philip J. DeAngelo
Managing Director, Focused Wealth Management

VIDEO SECTIONS

The chapters below in the video are indicated by the blue dots in the timeline of the video. You can jump to each section below using them.

00:59 – Investment Outlook
16:40 – Market and Economic Update
40:34 – Geopolitical Update
45:48 – 2023 Market Outlook