To watch this blog in video format go here. Typically, for quarterly reviews I put in a graphic showing how major markets faired over the previous year, but who wants to see a bunch of big red down arrows? I know, I don’t, besides, you know your portfolio took a big hit in 2022, but if you’re a glutton for punishment, here you go. So, let's look at the bright side. What has happened after a down stock market year as measured the by the S&P 500? Often, the market was positive the next year. The last time it wasn't, was the years surrounding 9/11, and the last really big down year was in 08. 2022 wasn’t as bad as 08, but it was still pretty bad. But there is a key difference to point out: during the financial crisis of 07 and 08, we had far greater overarching problems with our global financial system. The 2022 down market was driven mainly by pesky inflation. Inflation, when not kept in check, can be a serious problem, but, I think the Fed is doing a good job of facing inflation head on with a "short term pain, long term gain" approach with their multiple aggressive rate hikes last year. So, will 2023 be positive? I'll let you know come Christmas-time, but, we're off to a good start, and hopefully we can add to that long list of positive market returns the year following a negative one. So, get in those IRA and 401(k) contributions while markets are still down because they won’t be forever. And remember, down markets are temporary, up markets are permanent. If you have any questions, reach out to me here.