It’s rare to see two bad years in a row. I have a hunch that 2023 may rhyme with 2009. Bear markets don’t usually last longer than a year. A spectacular shakeout early in the year could set the stage for a steady grind higher later on.
That said, we contrarians don’t buy hunches. Until we see an edge, we’ll remain cautious—and follow these rules:
2023 Rule #1: Don’t fight the Fed. Print this rule out and tape it next to your computer. Or the backside of your phone. Or whatever device you use to make trades.