“Life is like riding a bicycle. To keep your balance, you must keep moving.”  Albert Einstein

And that’s what we must do, especially after such a challenging year.

So, how will the stock market perform in 2023?

While we are not market prognosticators, here is some notable information regarding the S&P 500 index, which is typically a good barometer for the stock market:

• The S&P 500 has historically risen after the end of Fed rate hike cycles
• The index has historically bounced back after down years
• Since 1950, the S&P 500 has always gained a year after midterms (no matter who is in office)
• A Democratic President with a Republican or split congress has been a strong combination for the index

“True confidence is living in uncertainty and moving forward.” (Hill, 2022)

Of course, we live in uncertainty, and anything can alter the course of history. However, moving forward is essential.

There are still questions that need to be answered in order to provide clarity for the markets:

How will interest rates change and affect bond returns?

Will inflation moderate?

Will we see (and feel) continued economic slowdown and even recession?

Perspectives on these questions and additional details are provided in our LPL Research Outlook 2023. Please click on the link below to peruse the Outlook and we will be glad to discuss any questions you may have.

Click here for LPL Research Outlook 2023

Disclosures

Past performance is not indicative of future returns.  The historical information cited is from the LPL Research Outlook 2023. Please read the Outlook for proper reference.  This information should not be relied upon for investment decisions. Please consult with your Financial Advisor.

References

Hill, J. (Director). (2022). Stutz [Motion Picture].