As we head into 2023, we’re looking back on and discussing the most important takeaways from 2022. To put it simply, 2022 was the first ugly year in terms of returns for a lot of people. When we take into consideration that the average age on Wall Street is 35, and the last bull market was 12-13 years, we know that most young traders have never seen a bear market. The tip of the iceberg that nudged us over into a different era for markets was 2020. Covid hit and we saw a lot of stimulus money going out in 2020 and 2021. This resulted in a big spike in inflation.
The change in market wasn’t solely a result of covid however. A large factor was 10-15 years of way too loose monetary policy. We saw historically low interest rates, but interest rates don’t stay low forever. If we look at the US treasury market, we’ve been in a bull market for 40 years. These long stretches of bull markets led to complacency with many traders. People have become conditioned to buy in the dip, and sentiment takes time to change. The key to investing and trading in 2023 will be lots of research and well thought out moves.
What You’ll Learn:
- The biggest financial takeaways from 2022.
- How Covid did and didn’t affect the market.
- What signs point to things being too good to be true.
- What to expect in 2023.
Favorite Quote:
“We’re going to have to become more researched investors and traders.” -Serge Berger
