Market Recap: December 2022

January 05, 2023

Market commentary

  • U.S. GDP revised upward to 3.2% in Q3, reversing two straight quarters of declines, but trajectory is concerning
  • Manufacturing economy now in second month of contraction as interest rate increases take effect
  • Inflation is elevated and of great concern, but recent reports indicate some cooling


Select economic and market data

Statistic (monthly unless noted)



U.S. GDP (quarterly) 3.2% -0.6%
Consumer Confidence 108.3 101.4
Consumer Price Index Y/Y 7.1% 7.8%
Core PCE (x food & energy) 4.7% 5.1%
ISM Manufacturing Index 48.4 49.0
Unemployment Rate 3.7% 3.7%
2-Year Treasury Yield 4.42% 4.38%
10-Year Treasury Yield 3.88% 3.70%



  • Stocks ended the year with a thud after regaining footing in November
  • 2022 return divergence was extreme, with high-growth tech names strongly underperforming more defensive value
  • International indices significantly outpaced domestic counterparts for the quarter on U.S. dollar selloff
Equities Indices December 2022


Fixed income

  • Treasury yields were up slightly in December, with the 10-year finishing at 3.9% after peaking above 4.2% in October
  • Fed raised rates seven times in 2022, pushing target rate to 15-year high
  • Fed signaled Fed Funds Rate between 5.0% and 5.5% in 2023
Fixed Income Indices December 2022


Strategic outlook

  • Above-average volatility is likely to persist given inflation debate and heightened central bank involvement
  • Some caution is warranted especially on international equities, favoring small-cap and mid-cap domestic stocks
  • Maintaining shorter-duration fixed income exposure, but intermediate part of the curve is starting to look more attractive
  • Personal
  • market recap

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