2022 - Good Riddance!

This morning the temperature at my house was 13’ below zero! Got to love living in Minnesota! I remember growing up on the farm on days like this, Dad and I or my brother when we were older (my mom also) would get up and milk the cows at 5:15 am. The barn was always warm because of the animals, but the pipes and equipment were not! Hopefully the pipes would not freeze, and the tractors started. We would get done milking and then have to clean the barn. It was always stressful when my dad turned on the barn cleaner. Has it frozen? Would it break? That was the constant stress of everyday dairy farming in the winter.

Well in a way 2022 in the stock market felt like that! Everyday coming into the office to see if the market would go down again! It was the worst year since 2008. I know most of you realize that. However, things were starting to get better towards the end of 2022 and so far 2023 it is off to a great start. Inflation is coming down, so there is optimism that the Federal Reserve will stop raising rates sooner rather than later. Of course, a recession is still a distinct possibility, but so far the economy remains strong. Layoffs are a concern and certainly the housing market has slowed significantly. If rates stabilize and we do not go into a deep recession (a mild one may be okay), I believe the market will react positively. Remember that the market is always looking forward.

So, here’s to hoping for a good 2023 both in our investments and in life! So long 2022 and Good Riddance!!

Sincerely,

Paul D. Hofslien, CFP^®
Branch Manager/Financial Advisor