Wall Street ended 2022 on a low note. But experts say there are a few moves you can make now to ensure your portfolio is ready for 2023.
The S&P 500, an index commonly used as a benchmark for U.S. stocks, ended the year down 19.4%. It was the index’s worst annual performance since 2008. Meanwhile, the Dow Jones Industrial Average tumbled 8.8% for the year and the tech-heavy Nasdaq Composite fell a whopping 33.1%.
Stocks kicked off 2022 near a record high. But amid decades-high inflation and the Federal Reserve’s attempts to bring down those spiraling consumer prices with interest rate hikes, financial markets quickly began to struggle. Bonds fared poorly, with the Bloomberg US Treasury Index experiencing a record annual loss. Crypto markets felt the pain, too, exemplified by bitcoin dropping from around $47,000 per coin at the start of 2022 to around $17,000 per coin now.
After such a tumultuous year for the markets, many investors are likely feeling unsettled about how their investment portfolios will perform in 2023 — but experts say that’s no reason to abandon your investing strategy.
“I know it is hard to hang in there,” says Catherine Valega, owner and financial planner at Green Bee Advisory in Boston. “But hang in there you must.”
There are several moves you can make to ensure you’re starting off the new year on the right foot. Here’s what experts say to doing consider now.