12 2023 OUTLOOK While we expect a better return environment in 2023, volatility is likely to persist until we gain more clarity on the lagged impact of the Fed’s tightening cycle on the real economy. However, any downturn from here will likely present investors with good entry points as markets tend to move higher over time. With that said, timing the bottom of the market is extremely challenging. We encourage clients to stay invested, as the best days in the markets often quickly follow the worst – and we have seen this play out this year during several bear market rallies. Most importantly, investors should remember that markets are forward looking and anticipate changes in the real economy, roughly 6-12 months ahead of when they appear in economic data. While the Timing the market is unlikely to bottom before the recession starts, it can rally before the “ data turn uniformly positive. bottom of the market Exhibit 10: Dangers of Market Timing is extremely Exhibit 10: Dangers of Market Timing S&P 500 Cund nnual  t­ €ate ‚%ƒ Based n Days „…ssed …n t­e „a†et challenging. ‡anuay 1ˆ 1‰‰5 -Šve‹e 30ˆ 2022 We encourage 10.0% 8.1% clients to 8.0% stay invested, 6.4% 6.0% 5.2% as the best days in the markets 4.0% 3.2% often quickly 2.0% 1.5% follow the worst. 0.0% ” 0.0% -2.0% -1.4% Fully Less 5 Best Less 10 Best Less 20 Best Less 30 Best Less 40 Best Less 50 Best Fully Less 5 Less 10 Less 20 Less 30 Less 40 Less 50 Invested Days Days Days Days Days Days Invested Best Days Best Days Best Days Best Days Best Days Best Days Source: Strategas. As of November 30, 2022. 1 Source: Strategas. As of November 30, 2022. There will be an inflection point where markets see through to the recovery. This transition to an environment of higher rates, higher inflation and tighter monetary policy has been fraught with volatility. We believe the combination of timely asset allocation shifts, broad diversification, and the discipline to stay invested over the long term will be critically important. We will keep you informed of key developments and their impact on investment strategy and, as always, help you uncover opportunities that can help build and preserve your wealth.