Moran Monthly Digest: Nov. 2022

Insights That Drive Better Decisions

Stay ahead with expert perspectives on markets, risk, and opportunity, grounded in a disciplined approach to long-term wealth management.

Dear Clients,

Like many of you, I am heartbroken over the widespread devastation of Hurricane Ian. I have also been humbled by the overwhelming community response as we rebuild our beloved piece of paradise. For those of you looking for ways to get involved in relief efforts, please visit Volunteer Florida for more information. At this time, we would also like to express our sincere gratitude to all first responders and volunteers working tirelessly to assist those in need.

Currently, we are at the height of seminar season. I will be hosting my ‘State of the Market’ seminar in Moran Wealth Management® Center for Financial Education. I look forward to sharing my outlook on the economy and market. Several other advisors on our team—Charlie Chesebrough, Mike Mongin and Aaron Simpson—are also hosting seminars. Our seminars are complementary and open to the public. We ask that you make a reservation through our website or by telephone in advance.

Speculation surrounding Fed policy continues to drive the stock market. Although inflation remains high, we received encouraging news this month that price pressures are moderating. This could encourage the Fed to slow the pace of their rate hikes. We anticipate the market responding favorably if the Fed pivots to a more accommodative policy. As investors regain trust inflation is cooling, we believe the market could continue gaining momentum into Q1 of 2023. I encourage you to check out our economy Q&A where we answer in detail some of the most common questions we are currently hearing from clients. As always, please contact our office if you have any questions or if we may be of help in any way. It is our privilege to be of service to you and your family.

Key Takeaways:

We believe the Federal Reserve will slow the pace of their interest rate hikes since inflation is now showing signs of easing. We would anticipate the market responding favorably to this dovish pivot. We anticipate stocks continuing to climb higher through Q1 of next year if inflation continues decelerating. We continue to favor value stocks over growth stocks in this current economic climate. We believe bond performance will continue to be strained while inflation remains high. Short-term bonds remain preferable to long-term bonds. We believe if there were to be a recession in 2023, it would be mild due to a strong labor market. Since technology has made economic data so readily available, we believe equities have already priced much of this potential economic slowdown into their valuations. This would mean that the markets, while volatile, could face lesser downside compared to previous bear markets…

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This content is for informational and educational purposes only and is not investment, legal, tax, or accounting advice and is not a recommendation, or an offer or solicitation to buy or sell any securities. References to markets, index levels, timing opportunities, and potential outcomes are opinions expressed at the time of content creation and should not be relied upon as current advice or guarantees of future results. Past performance is not indicative of future results, all investing involves risk, including the possible loss of principal. The views expressed are those of the author(s) as of the date of publication and are subject to change without notice.

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Portions of this content do contain content generated or assisted by artificial intelligence (AI). While reviewed for accuracy, AI-generated content may not fully reflect all nuances of your individual circumstances. Please consult your advisor directly for personalized guidance.

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