The Santa Pause

Hello everyone, and welcome to the December 2022 edition of the Boodle blog! It is here where we pontificate on what is happening in the market and how our portfolios may be affected, and what, if any moves we should be making.
Wow, it's hard to believe that we are about to say goodbye to 2022, and to be candid, I don't think that's a bad thing!
First, we'll start off with a look back at November's numbers for the market, and then we will look ahead to December and see if we can leave the year in a little bit better shape than what we had throughout 2022.
For November, the numbers look better than they possibly felt. The DOW added+7.54% and the S&P 500 gained +9.84%. The NASDAQ led the indices with a double-digit advance of +11.27%! These numbers dovetail nicely with our November blog where we stated that a "significant turnaround" was forming, and we took the bold stance that portfolios should be 100% invested. It takes guts to make a call like that, especially when there were so many saying & writing that you should do the opposite.
Always keep in mind, that these forecasts are difficult to do, and that the market can retest a recent low, and frustrate everyone. This move however should hold up over time, and for now we are sticking to it. November 8th the voters spoke, and as we forecasted, the House changed hands, and the Senate may still remain in Democrat hands; no matter, we now have gridlock, and it gives us some clarity over the next 24 months. We need to mention the Federal Reserve here, because even though they raised rates by 0.75%, they signaled a possible reduction in large hikes going forward. So, as we close the year here in December, let's acknowledge the Bear Market that came in January, and will take about 14% out of our portfolios. Bear Markets are a part of investing, and don't let that decline take your focus off of your long-term goals. The gift for investors in December comes directly from Santa in the form of dividends! Yes, that's right! December will bring dividends to everyone's portfolio, so look for them in the 3rd week or so of the month. Boodle would like to extend our warmest holiday wishes to our clients, friends, and everyone who has helped us through this difficult year. We wish you health & happiness in the coming New Year-From your friends at Boodle.