Curious about what's happening in the stock market? Every month, the alooola® team summarizes the key takeaways in a quick, easy-to-understand article!
What Do I Need to Know?
The Obsession with Recession
•The Federal Reserve has continued raising interest rates in an attempt to tame inflation, with rates in 2022 surging to 15-year highs.
•The economy has fallen into a recession 9 of the past 12 times the Fed tightened monetary policy by raising interest rates.
•This may be one of the reasons 90% of investors expect the U.S. to enter a recession before the end of 2023.
•The stock market has fallen around 30% in all recessions going back to 1929.
Bear With Us
•Although a recession may be in store for us in 2023, long-term investors should still benefit by keeping money in the stock market.
•Reason #1: The average bear market (which we are in now) is historically followed by a much longer bull market (averaging 3.8 years and rising an average of 167%).
•Reason #2: Even if we enter a recession the stock market could still rise, historically the stock market rises around 6 months before a recession even ends.
Cocktail Party Facts
•As of this December, only 13% of S&P 500 companies have higher income yields than 10-year Treasuries.
•Polls showed that consumers plan to spend an average of $867 on gifts this season, down from the $932 average gift-spending estimate in October.
•Don't forget you can still make contributions in your IRA account for the year 2022 until April 18, 2023.
•Additionally, beginning next year those who qualify will be able to contribute up to $6,500 to a Roth Individual Retirement Account in 2023.
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Disclosure: alooola® is a branded investment advisory service provided by Glen Eagle Advisors, LLC, an SEC Registered Investment Adviser. The Glen Eagle Advisors brochure provides an explanation of the service and its fee structure. Material presented is for informational purposes only, and is not meant to be advice to any individual. Talk with alooola® to see how this information may apply to you. Consider your current financial situation, tolerance for risk, and investment objectives before you invest funds in securities through alooola®. For a more complete explanation of the alooola® service, please visit www.alooola.com. This email includes factual data based on articles published by Reuters, Wall Street Journal, Barrons Magazine, Apollo Chief Economist Research, BofA Global Research, MFS Research "By the Numbers", and Bloomberg.