FIEGI Report – 10 Investment Lessons from 2022

Hello everyone! We’re back with another FIEGI Report recapping investment lessons learned from 2022. Two other quick notes:

1. Remember to get your tax return information gathered and submitted as soon as you can.
2. New legislation passed in late December called The SECURE Act 2.0. Nothing for you to do, we just want to pass on that we’ve reviewed the new law internally and are ready to implement the changes for you. Please feel free to reach out to your Planning Team if you have any questions.

With that we’ll get to the article this month:

• 10 Investment Lessons from 2022 (3-min article)

Summary:

• Lesson 1: Just because something hasn’t happened doesn’t mean it won’t
• Lesson 2: Young, unprofitable companies are not good investments
• Lesson 3: Markets are less liquid and thus more volatile
• Lesson 4: Gold is not an inflation hedge over your investment horizon, and neither is bitcoin
• Lesson 5: Value investing is not dead
• Lesson 6: Be aware of recency bias – don’t invest in something just because it has done well
• Lesson 7: Diversification is as important as ever
• Lesson 8: Active management is a loser’s game in bull or bear markets
• Lesson 9: A liquidity premium is not a free lunch — it’s compensation for taking risk
• Lesson 10: Ignore all market forecasts

Monthly Quote:

“Investing is about managing risks, not returns. This means that bear markets (downturns) are a necessary evil. Without bear markets, there would be no risk and no equity premium (returns). Smart investors accept that uncertainty of economic and geopolitical risks is the norm.”

-Larry Swedroe (Head of Financial and Economic Research – Buckingham Strategic Partners)