Recent events keep me confident that my portfolio positioning into 2023 is on the right track.
For those of you that have been reading me for the last 6 months or so, you know what my sentiment was coming into 2023. Namely that we would see massive geopolitical volatility and a challenge to the U.S. dollar as global reserve currency. I also predicted (wrongly so far) that equity markets would eventually succumb to the reality of higher interest rates and move lower.
Late last week I checked back in on the insanity that is equity markets and wrote about just how disconnected from reality I believe they have become. Make no mistake about it, the market is doing the opposite of what I thought it would do this year so far, but I’m not ready to capitulate on my stance that we will have to move lower before we move higher. Last Friday’s article, “Punch-Drunk Investors Will Keep Ignoring Reality...Until It's Too Late”, is free to read here.
With that said, there have been several waypoints that have reaffirmed some of my favorite investment ideas heading into the year - all of which are laid out here. I wanted to take a quick look at some developments over the last 48 hours that reaffirm several of my favorite sectors and positions.