CONCLUSION Staying balanced to stay on course e experienced a to loosen. Voters have even chosen ongoing risk from inflation, a possible turbulent year in a more balanced government in recession, and global conflicts; while W 2022 as global Washington—with a single party no also understanding that markets are central banks, led longer controlling the presidency, always forward looking, and thus by the Fed, tackled House, and Senate. anticipating the changes that they inflation and the global economy Even as the environment remains may respond to. By viewing 2022 and cooled. While we can’t know exactly uncertain, the ongoing process of 2023 as a rebalancing process rather when the turbulence will end, the finding a balance may be starting to than as simply a downturn, Outlook economy and markets have already create opportunities for investors. 2023: Finding Balance provides made meaningful progress toward Higher interest rates bring a much perspective on what’s been happening rebalancing. improved outlook for bonds, which and what may lay ahead. Inflation has started to recede, have not seen yields at these levels in Ultimately, we believe the best path a process we believe will continue many areas of the market in more than forward for staying focused in any in 2023, even if it will likely take a decade. At the same time, segments environment is having a thoughtful some time to fully return to normal. of the stock market that had become plan and the right support. Together, Fed rate hikes will very likely end expensive have become more fairly they can help us maintain our balance in the first half of 2023, although priced, while other segments actually even during the most challenging rates may remain at a restrictive look relatively cheap. market periods. Please reach out to level throughout the year. Labor Knowing when to shift toward your trusted financial advisor with markets, which had remained tight opportunities is also a balancing questions about how to stay on course despite high inflation, have started act. We need to account for the toward reaching your financial goals. LPL RESEARCH