By late January, I usually have written the previous year on many documents. After some corrections, I begin to get in the habit of writing the current year, but interestingly, this has not yet happened in 2023. This is probably because I am happy to see 2022 in the rear-view mirror.
Last year, the financial markets were difficult, to say the least. The war in Ukraine, runaway inflation, rising interest rates, and other factors, caused most financial assets to decline in price. The bond market posted its worst returns since the early 1980s while the stock market entered bear market territory. There were little places to hide for investors.
At the same time, as advisors dealing with future uncertainty, it is important to focus on positive developments. Although last year was difficult for investors, there are some silver linings to be observed. For example, at the start of 2022, most bonds were yielding less than 2%. With the changes in the markets, some high-quality bonds now yield upwards of 4%. Additionally, stocks have come down from their highs which should improve their long-term expected returns going forward.
Another positive we are focusing on at BPC Advisors is the health of our firm. We are entering our seventh year in business and our client base continues to grow. This growth is primarily due to confidence our clients have shown in us through referrals. We continue to believe our focus on comprehensive financial planning and disciplined investment management is the best way to help people reach their long-term goals. We are excited that we are now helping more families and hope 2023 will bring an even wider audience.
As our practice has evolved, we have been asked if we have plans on hiring new employees or if any other changes were on the horizon. We are pleased to say that we don’t see any major changes with respect to our business structure in the coming year. Both Geoff and I enjoy being practitioners and look forward to continuing our personalized approach to helping our clients. Although, we do not yet what is in store for the markets this year, we continue to believe long-term investors will be rewarded for sticking to their respective financial plans. We continue to look forward to helping you reach your financial goals.