The 2023 Andex Chart Story
The 2023 Andex Chart Story
The 2023 Andex Chart Story
In times of growing uncertainty, it is critical to adhere to your long-term plan, while also adapting with the evolving
environment. With current markets facing a sudden wave of bank instability, record high inflation, increased Fed tightening
and geopolitical risks overseas, it’s important investors remain diligent in their portfolio positioning. This backdrop could
be the “new normal” for 2023.
The enclosed Morningstar Andex chart* highlights the importance of staying invested throughout various market cycles
and global events. Whether you are investing in stocks, bonds, or a balanced portfolio, the most consistent contributor to
positive performance is time spent in the market. Since 1926, markets have rallied back from even the sharpest of selloffs.
Drawdowns have been most significant within risky asset classes such as US small-caps, yet with that risk comes reward.
Equities have been the best performing asset class for nearly the last 100 years. The best performing asset classes over the
past nearly 100 years have been within equities. Investors looking to smooth out volatility should consider a balanced stock/
bond portfolio. Both risk tolerance and time horizon are paramount in determining long-term strategic asset allocation.
• Since the 1970s, recessionary periods have seen equity markets their portfolios. Particularly within fixed income, investors
recover to pre-drawdown levels within two years, on average. must find an appropriate balance between seeking yield,
Investors who exit the market during volatile periods are at risk and ballast against risk assets. Where suitable, alternative
of missing out on the often-swift recovery that follows. investments may provide an additional source of income to
help supplement lower yields within traditional asset classes.
• As inflation has reached record levels — higher than we’ve
seen over the past decade — the Fed continues to raise
• The US housing market has experienced significant demand
interest rates to control prices and tighten borrowing power.
through the early 2020s. Although the combination of low
• The ripple effects of the Covid pandemic sent markets into a inventory and high competition has made it challenging for
tailspin, as reflected in both stock and bond performance over many buyers to make a move, this scenario has driven home
the last few years. As we look forward to a recovery phase, prices up exponentially. Meanwhile, the increase of all-cash
such market fluctuations underscore the importance of offers and income property investment has added more
diversification and asset allocation during periods of volatility. competition to an already tight market.
• While banking instability continues to unfold, growing concerns • Average life expectancy has increased by around 20 years for
over market security are increasing. In the US, the intervention
both men and women, from the 1920s to the 2020s. With the
by federal regulators also raises questions on the oversight
majority of Americans living longer lives, needs around both
and prevention of future financial crises.
accumulation and retirement spending have subsequently
• Both dividend and bond yields have been on a downward increased. It is important to engage with your advisor to
trajectory for the past 40 years. This has created a ensure your investments are tailored towards meeting your
challenging environment for investors looking for income from retirement goals.
Brazilian equity; macro; Leading liquidity solutions Leader in global fixed A global leader in index
corporate bonds and fixed provider with a comprehensive income, risk management management dedicated to
income strategies array of cash and short solutions and absolute precision and client
duration strategies return investing partnership
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Corporation.Dreyfus Cash Investment Strategies (Dreyfus) is a division of BNY Mellon Investment Adviser, Inc. (BNYMIA) and Mellon Investments Corporation (MIC), each a
registered investment adviser. Mellon Investments Corporation is composed of two divisions; Mellon, which specializes in index management and Dreyfus which
specializes in cash management and ultra short strategies. Dreyfus is one of the industry’s leading institutional managers of liquidity solutions. BNYMIA and MIC are
affiliated subsidiaries of The Bank of New York Mellon Corporation. Except where otherwise indicated, the term “Dreyfus” as used throughout this presentation
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