January Investment Perspectives
Our Investment Strategy Group offers commentary on reducing national debt, major fixed income themes from last year, and the economic factors weighing most heavily on investors in 2023.

In this month's issue:

How Does the Fiscal Deficit Get Resolved - Mark Luschini

In the December issue of Investment Perspectives, we addressed the oft-mentioned concern that the U.S. government’s indebtedness is poised to cause distress for the economy and/or financial markets. In response, we posited that the country’s debt level does not pose an immediate risk as long as new debt can be issued at reasonable yields and there are willing buyers of it.

 

Fixed Income: 2022 Year in Review - Guy LeBas

Our long-standing tradition in the first Investment Perspectives of each year is to reflect on major fixed income market themes from the prior year, and pull some forward-looking lessons from those themes.

In many ways, some painful for investors, 2022 was a unique year for fixed income markets and there is no shortage of lessons from this rather ugly period. These lessons were created by a combination of forces, and some will make an impact in the future. We believe there is at least one reminder from 2022 that will stick around for a long time: When economic volatility increases, the wheels come off the interest-rate bus quickly.

 

New Year, Old Concerns - Gregory M. Drahuschak

Aggressive Federal Reserve actions, mixed economic data, historically high inflation, a strong dollar, domestic and foreign political issues, along with gradually diminishing earnings expectations conspired to shove the Standard & Poor’s 500 index (S&P 500) to a 19.44% loss last year, which was its worst down year since 2008.

Back-to-back annual losses are relatively rare, but 2023 begins with many of the issues that weighed on stocks in 2022.

 

You can read the full Investment Perspectives here.

 

Disclaimer

The information herein is for informative purposes only and in no event should be construed as a representation by us or as an offer to sell, or solicitation of an offer to buy any securities. The factual information given herein is taken from sources that we believe to be reliable, but is not guaranteed by us as to accuracy or completeness. Charts and graphs are provided for illustrative purposes. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.

The concepts illustrated here have legal, accounting, and tax implications. Neither Janney Montgomery Scott LLC nor its Financial Advisors give tax, legal, or accounting advice. Please consult with the appropriate professional for advice concerning your particular circumstances. Past performance is not an indication or guarantee of future results. There are no guarantees that any investment or investment strategy will meet its objectives or that an investment can avoid losses. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. A client’s investment results are reduced by advisory fees and transaction costs and other expenses.

Employees of Janney Montgomery Scott LLC or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within. From time to time, Janney Montgomery Scott LLC and/or one or more of its employees may have a position in the securities discussed herein.

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