Chronicles of an Allocator

January 2023: Resolutions for the Investment Professional

Issue 35, January 2023

Authored by Steven Novakovic, CAIA, CFA

As we ring in the new year, it is once again time for the annual tradition of resolutions. In this edition of Chronicles, we highlight a handful of resolutions we believe are worthy of keeping. To paraphrase everybody’s favorite finance quote machine, Warren Buffett, last year was a period where the tide went out and we discovered who was swimming . . . well, we’ll let you look up the rest of the quote. If you found yourself swimming with those investors last year, then 2022 was probably an even worse experience for your portfolio. With nearly all major central banks aggressively raising interest rates throughout 2022, bond prices plummeted and stock valuations came back to earth. The year was a perfect storm for left tails, drawdowns, and overall losses. If you are starting 2023 knowing you still have some resolutions to make and want to keep avoiding the same mistake again, then we’ve got you covered.