The “Lunar New Year” began on January 22, 2023. It is the beginning of a lunar (or lunisolar) calendar based on the moon’s cycles. Lunar calendars are observed and celebrated by numerous cultures worldwide, such as the Chinese, Hindu, Buddhist, Islamic, Jewish, and many Native American tribes.
One of the more well-known New Year observances is the 15-day Chinese “Spring Festival,” celebrated by eating reunion dinners full of unique dishes created to give blessings for the next year, setting off fireworks, and giving red envelopes filled with “lucky” money to children.
It is also the beginning of a new sign in the 12-year cycle of the Chinese animal-zodiac. This year is the “Year of the Rabbit.” In Chinese culture, the rabbit’s quiet personality hides its confidence and strength. The rabbit steadily moves towards its goal, no matter what. While things may feel desperate at times, rabbits keep working hard with the understanding that any difficulty will be temporary.
Investors could all use a few of the rabbit’s characteristics as we transition into 2023. Thus far, markets have been generally strong — especially Big Tech (despite numerous layoffs). However, the economic outlook is still somewhat hazy, and markets will be prone to a higher sensitivity to economic data until the picture becomes clearer. For January, the S&P 500 closed up 6.28%.
There seems to be a renewed sense of optimism among market participants that an economic “soft landing” is achievable, and markets have been buoyed by it. Of course, it’s early, and there is likely more volatility to come, but long-term investors, like the rabbit, should stay focused on steadily moving toward achieving their goals.
Articles of Interest
Not only does this article provide an overview of the good, the bad, and the ugly of markets in 2022, including the defanging of the FAANG stocks and the battering of bonds, it also reinforces the case for long-term optimism, including how diversified portfolios have bounced back—historically—after market declines.
Tax season is upon us, and if you want to reduce how much you pay the government, you need to understand which tax credits you can claim. Credits are an efficient way to reduce a tax bill, but they can have complex rules.
The key to planning for your retirement is to craft a plan based on observable facts, not common myths. Here are nine myths you should be on the lookout for.
To move or not to move? That is the question for many retirees. But retirees often overlook an important factor when deciding if, or where, they should relocate — state and local taxes. The difference between taxes in one location versus another could be in the tens of thousands of dollars for some.
It’s wise to be skeptical of a hack — but the Food Network tried and tested these in their kitchen, and they’re actually winners. So work them into your everyday routine to upgrade your cooking.
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S&P 500 Index represents the 500 leading U.S. companies, approximately 80% of the total U.S. market capitalization.