US stock and bond markets failed to keep their positive momentum going from November, as investors struggled to shake off concerns regarding inflation, jobs, and a possible recession in 2023. The S&P 500 fell 5.8% during the month of December, finishing 18.2% lower for the year, and the Vanguard Total Bond Index fell 0.6% for the month, finishing 13.2% lower for the year. All of Radius’ Managed Strategies had a good year relative to their benchmarks. Both the active Radius 100 and the passive Index 100 strategies outperformed the S&P 500 index in 2022 as did the Radius and Index bond strategies. The Balanced Risk strategy – a mix of stocks, bonds, commodities, gold, and real estate – also outperformed both the S&P and its benchmark 60/40 (60% stock, 40% bond) index.
While the worst appears to be behind us, economic data continue to be mixed, and we remain cautious regarding our approach to investing at this time. We recommend that investors remain prudent. Attempting to “time the market” is seldom a successful strategy and we would not recommend you do so. The best way to protect from long-term investment declines is to diversify one’s investments across multiple, uncorrelated asset classes and investment strategies.