MacNicol’s Monthly Commentary – December 2022
With this commentary, we plan to communicate with you every month about our thoughts on the markets, some snapshots of metrics, a section on behavioural investing and finally an update on MacNicol & Associates Asset Management (MAAM). We hope you enjoy this information, and it allows you to better understand what we see going on in the marketplace.
“Money flows into most funds after good performance, and goes out when bad performance follows”
– John Bogle
Financial imbalance…
Bank of America recently circulated a chart showing the performance of a traditional balanced portfolio over the last 100 odd years. I would not call it a flattering chart, bright red bars were used to highlight some of the portfolio’s more severe drawdowns and assuming 2022 concludes as Bank of America (and we) suspect, 2022 will be one for the ages and investors will be able to see that bright red bar off and on for the next 50 years.
The corrective periods in stocks during the 1980s (1982, 1988) the 1990s (1990, 1998) and the early 2000s (2003, 2009) were offset by traditional fixed income securities, such as bonds, which stepped in to insulate balanced portfolios from the carnage in the stock market. But in those periods, fixed income positions offered investors yields as high as 16% (1982). Those days are long gone. But we detect a chance looming over the horizon, and we will probably skip out on the Eggnog this year as a result. We helped more investors this year than any other in our history, but I think we can do even more to help investors deflect those annoying bright red bars.
Click the link below to download the full commentary…
Click here: The Monthly December 2022
