We’re only a week into the new year, but 2023 is already looking just as uncertain as 2022.
To start, Wednesday saw the release of the minutes from the Fed’s December 13-14 meeting…
And while December’s rate increase was less than the three-quarter percentage point hikes we saw through most of 2022, policymakers made it clear that this wasn’t a sign of a policy change…
According to the minutes:
No participants anticipated that it would be appropriate to begin reducing the federal funds rate target in 2023.
That said, unemployment did drop to 3.5% as of December, according to the Bureau of Labor Statistics… one of the lowest rates in decades, and some encouragement for the Fed to at least “slow down” its hiking frenzy if the trend continues.
But for the average investor, that’s little consolation…
Last year, the cost of everyday goods hit record highs, despite the Fed’s rapid interest rate increases… and although some prices have since cooled, the odds of the Fed “fixing” the economy any time soon are slim to none.
That’s why this week at PBRG, we’ve been sharing our top strategies to take advantage of what’s to come in 2023.
We may not know when the market will turn around… But having the right mindset now is the first step toward reaping all the gains 2023 has to offer.
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Regards,
Chaka Ferguson
Editorial Director, Palm Beach Daily