The prior twelve months were difficult, even for disciplined investors. Capital markets delivered a formidable test of investors’ resolve. World news in 2023 will continue to provide surprises, good and bad. We remain confident that adherence to your plan and patience will be well rewarded. Once again, we suggest our readers re-commit to these timeless principles:
• I will remind myself that investing is not a form of entertainment.
• I will stick to my plan.
• I will not attempt to pick winning stocks.
• I will ignore market prognosticators.
• I will ensure that my holdings are adequately diversified within each asset class I own.
• I will focus on controlling my investment-related costs.
• I will stay abreast of changes in investment-related tax laws.
• I will not purchase any financial instrument that I do not understand.
• I will ignore money managers or others selling products rather than advice.
• I will take full advantage of my qualified retirement plans by making the maximum allowable contributions consistent with my budget.
• I will hold my least tax-efficient assets in my tax-deferred accounts.
• I will rebalance my portfolio infrequently, but at regular intervals regardless of the current state of the markets.
• I will not allow the price I have paid for a security to influence my future investment decisions—except for tax considerations regarding capital gains and losses.
• At year-end, I will harvest tax losses simply, without deviating from my target portfolio allocations, by selling and buying index-type funds within the same asset class.
• I will appreciate the simplicity of the AIS approach. Instead of worrying about factors that are not within my control, I will establish a clear plan and turn my attention to enjoying life.
Also In This Issue
Quarterly Review Of Capital Markets
97 Years Of U.S. Stock Market Returns
Highlights Of The Secure 2.0 Act Of 2022
Getting Ready For The 2023 Tax Filing Season
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Asset Class Investment Vehicles