Dear Valued Client,
“The individual should act consistently as an investor and not as a speculator.”
– Benjamin Graham, author of The Intelligent Investor
Aloni Goh Wealth Strategy Notes:
Equity markets are ending this turbulent year with yet another rally attempt. This rally will need to follow through strongly into the new year for a confirmed turnaround. Otherwise, it is likely that there will be more back-and-forth bottoming action, much like what we have seen over the past few months.
We continue to counsel patience and focusing on the bigger picture. We believe our portfolios have weathered this corrective phase quite well, during a year of crypto collapses, an unprecedented speedy spike in interest rates, an unrelenting crash in speculative growth concept stocks and extremely volatile action in most financial and commodity markets. We continue to be optimists and are positioned for the eventual resumption of the secular bull market.
Extra Reading:
It’s been quite a year for 2022. In January — which feels like a lifetime ago — Apple became the first company in history to reach a $3-trillion valuation. Over the next few months, a series of unprecedented events would cascade and affect the markets, including the invasion of Ukraine, which would bring forth economic sanctions and a shift in geopolitics, significant price movements in commodities and historic releases from the Strategic Petroleum Reserve; the collapse of meme stocks and cryptocurrency; an inversion of the yield curve… all against the backdrop of a continuing recovery from the pandemic and a historically fast pace of interest rate hikes.
It bears reminding that as we head into 2023 with an optimistic outlook, Aloni Goh Wealth Management exists to serve you. We have steadfastly avoided the pitfalls of the unchecked speculation and easy money that allowed the markets to rise to unprecedented heights. As noted in our November newsletter, we continue to adhere to the risk vs. reward tradeoff by continuing to work with you to realize your retirement and financial goals through assessing your needs and your ability to tolerate risk.
One of the ways we’ve done that is through our fixed income holdings in your portfolios. According to Jurrien Timmer, Director of Global Macro for Fidelity Investments in his outlook for 2023, he believes “… With the increases in yields and declines in inflation expectations we’ve seen over 2022, real yields are now clearly positive (meaning, yields after subtracting for inflation). In my opinion, this means that bonds are a viable asset class for 2023.”
With that, we wish you had a fantastic holiday season and we will see you in the new year!
From Ron, Alan and Jason.
As always, if you have any questions or wish to discuss whether any of the mentioned investments are suitable for you, please do not hesitate to call us at 604-658-3056 or email.
Best Regards,
Ron Aloni / Alan Goh / Jason Chen
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