Each New Year offers an opportunity to take stock of where you are financially and assess if your investment strategies are on track to help you create the life and retirement you envision.
As you look ahead to 2023, keep in mind the prior year was volatile due to higher US prices coming out of a pandemic, supply chain shortages, recovery from widespread layoffs, and conservative consumer spending as people braced for another year of unknowns. As the year ended, inflation moved in, causing additional concern for businesses, consumers, and fluctuating markets.
All is not lost though, as opportunities always arise from uncertain times. As we optimistically look ahead to a new year, we offer the following Top 4 Investment Strategies to Consider in 2023:
1. Consider a “Buy Low” Strategy Coming Into the New Year
Given market performance throughout 2022, it is worth considering a “buy low” strategy heading into the New Year to capitalize on stocks and securities at a discount to recent prices. While stocks rose out of from the bear market in Q4, the stock market still remains down by double-digits. Unpredictable markets allow for more movement and opportunities to buy stocks once unavailable to the every day investor.
2. Alternative Investments
Diversifying your investment strategy often requires thinking outside the box and possibly reallocating funds to alternative investment options. Alternative investments often provide a hedge against inflation and recessions and provide a good opportunity for long-term returns. You may want to consider looking into mutual funds, commodities, private equity or venture capital, managed futures, and hedge funds. Even investments in real estate, art and, antiques can prove fruitful in a time when the markets themselves are unpredictable.
3. Keep an Eye on Companies with Solid Financials & Steady Business Models
The formerly hot tech industry experienced growing pains over the last year and many suffered widespread layoffs and downsizing. Heading into 2023 it might be time to return to the steadfast industries of healthcare, insurance, real estate, renewable energy, automotive, and fast moving consumer-goods. As you review companies, consider buying stocks in businesses with strong financials, long-term management teams, and businesses making an impact in thriving industries.
4. Reassess Your Estate Planning Goals & Strategies
It is always advised to annually assess your retirement, estate planning, and end of life preparations. While keeping in mind your long-term investment goals, we advise you meet with your financial advisor and coordinate with your tax professional to examine nuances and changes that could impact your typical annual planning. You may find you need to reallocate funds due to family circumstances or property changes. The time to ensure your end of life plans are in place, your assets and property is protected, and your investments are allocated as you wish is now, when you have the capacity to influence the ultimate outcome and protect your legacy. To get started with this process, we invite you to review our “Striving to Maximize Your Financial Life” brochure here.
At Paramount Wealth, our mission is to take you beyond the basics and help you have the freedom to live your most inspired life. Whether you come blazing into the New Year with a bull market mindset or a conservative bear strategy, we invite you to contact us today to schedule time with an advisor and begin designing your wealth to support your freedom.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision.
The attached information was developed by Threaded Marketing Group, an independent third party. Any opinions are those of the author and not necessarily Raymond James. Any information provided is for informational purposes only and does not constitute a recommendation.
There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Investing in specifics sectors involves additional risks unique to those sectors and may limit diversification. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
Alternative Investments involve substantial risks that may be greater than those associated with traditional investments and may be offered only to clients who meet specific suitability requirements, including minimum net worth tests. These risks include but are not limited to: limited or no liquidity, tax considerations, incentive fee structures, speculative investment strategies, and different regulatory and reporting requirements. There is no assurance that any investment will meet its investment objectives or that substantial losses will be avoided.