New Year Greeting
January 3, 2023
We’d like to extend a warm New Year greeting with optimism for the year ahead.
Calendar 2022 was a challenging year for investment returns as rising bond yields pressured valuation multiples across asset classes. Rarely do we see both equities and fixed income markets decline in a given year. The good news is that we expect lower bond yields this year, but only as the result of lower earnings estimates during H1’23. Client portfolios begin the new year in a defensive position with the outlook for investment returns dependent on the transition from slowdown to Fed policy accommodation and eventual cyclical recovery. Fortunately, bond yields tend to peak 1-3 months before a Fed pivot and we’ve pre-identified 10-year levels that would signal an impending shift toward accommodation.
In preparation for this cycle, Jackson Square Capital (JSC) added two advisors to the team, with Jack McRoskey and Max O’Rourke joining in May. Jack and Max spent most of the year getting up to speed on creative planning solutions and best practices for client support. The two have also worked behind the scenes to enhance our portfolio hedging capabilities and manage real-time tax efficiency across all client accounts. Last year, we also expanded into alternative investments by providing exclusive client access to private equity, private credit and private real estate funds.
We are grateful to be starting another year as trusted advisor to our valued clients, whose financial success is our greatest priority.