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Perspectives Newsletter: Q4, 2022
A fourth quarter rally ultimately ended in a December swoon for domestic markets, capping off the worst year for stocks since 2008. Bitcoin again stood out for all the wrong reasons with another quarterly decline bringing the fullyear rout to -65%. Value stocks continued to outpace growth, decisively breaking a multi-year pattern of underperformance. Of particular note, growth stocks were unable to regain leadership in the fourth quarter when longer-dated interest rates fell, inflation looked to have peaked and the US Dollar declined. This environment is usually supportive for growth stocks. Another multi-year trend reversed in 2022 with the superior performance of international stocks vs. the US. Leadership changes often emerge from volatility. Growth has outperformed value for 15 years; the prior cycle was 15 years. US beating international this cycle has lasted 12 years vs. an average of eight years since 1975. There have been several false starts with these potential leadership changes in the last 18 months; this one may be real.Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Parsons Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Parsons Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Parsons Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. If you are a Parsons Capital Management, Inc. client, please remember to contact Parsons Capital Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, and/or revising our previous recommendations and/or services. A copy of the Parsons Capital Management, Inc.'s current brochure discussing our advisory services and fees is available upon request.
