Weekly Investment Update January 2, 2023

January 3, 2023 Nathan Willis

market returns 12-30Key Events: Russia escalated Ukraine attacks

Russia renewed its military offensive while Putin’s New Year’s address expressed increasingly hawkish rhetoric.

Revelers around the world rung in the new year with the least amount of COVID restrictions since the onset of the pandemic. The number of Chinese cases has spiked, however, leading the US to impose new restrictions on travelers from China.

Market Review: Santa brought a lump of coal…

While 2022 will be remembered for its volatility, the final week came and went in relative boredom - and without the hoped-for Santa Claus rally. The S&P 500 finished the week down slightly and most markets reported muted returns, capping off a forgettable year.

Outlook: …and CEOs are predicting another one

Cheaper stock valuations are key reasons for optimism looking into 2023. The corporate earnings supporting those valuations are crucial.

The chart below[1]illustrates that CEO confidence, which has cratered in recent months, has been a strong leading indicator of the trajectory of profits and the economy. Given concerns such as inflation and debt that affect the profit outlook, such low CEO confidence suggests a cautious outlook for stock returns.

While markets often recover after down years, this path is not assured in 2023. We will dig into our outlook and recommendations over the next couple of weeks. In the interim, we encourage a long-term focus on your goals. Revisit your plan, if needed, but don’t get distracted by one piece of data or another.

ceo confidence

january outlook

[1]Source: The Conference Board  CEO Confidence (conference-board.org)

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. OneAscent can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.


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