Insights

Women in the United States have had a long and complex financial history. Women have been on the front lines for centuries, from the early days of struggling to gain economic autonomy to the modern-day fight for equal pay and financial security. Despite significant progress in recent decades, the financial landscape for women is still far from equal. To gain a comprehensive understanding of the financial history of women, it is important to consider the major milestones, key trends, and ongoing challenges that women face today.

We are sharing our perspective on the recent news that Silicon Valley Bank (SVB) entered FDIC receivership on Friday. The rapidity with which this occurred surprised the market, as it was a highly unusual action taken by the regulators. A few points and action items are worth noting.

A bear market—or down market—is defined as asset prices declining by at least 20% over two months or more (as opposed to a bull market, in which prices rise by at least 20%). Bear markets occur during periods of anticipated economic weakness when investors are feeling less than optimistic about the state of the market. So, what should you do as an investor during a bear market? Below, we explore tried-and-true methods for weathering an economic downturn and discuss options to consider based on your personal finances, investment habits, and appetite for risk.

The past year has been difficult for fixed income investors, with the sharp rise in bond yields leading to a fall in bond prices. After an extended period of low interest rates, bond prices corrected sharply throughout the year as the Fed raised rates and increased its forward projections for those rates.

U.S. and global stock markets experienced solid gains in the fourth quarter but remained significantly in the red to end 2022. The S&P 500 Index gained 7.5% in the quarter including dividends, recouping some lost ground but ending the year down 18%. U.S. stock market performance was bad in 2022 no matter how you cut it. However, it is interesting to note that the Dow Jones Industrial Average, which is a stock price-weighted index of only 30 large companies, returned a solid 16% in the fourth quarter and declined only 6.9% in 2022, faring much better than the S&P 500.

After a strong and steady economic recovery from the pandemic-led downturn in 2020, 2022 has been a year of uneven growth and rising uncertainty.

Have you made a plan for your money in 2023 and beyond? At any stage of life, you can establish some financial goals to suit your particular situation. Taking the time now to evaluate your personal finances and set tangible, measurable goals for your money is the best way to prepare for a secure financial future—whether that is three years from now or 30 years from now.

On December 29, 2022, President Joe Biden signed the SECURE Act 2.0 into law. The legislation includes many changes affecting how Americans can save for retirement. Through tax credits, increases in retirement savings limits and delayed distribution requirements, it benefits both individuals who save for retirement and employers offering retirement plans.

Happy Holiday Greetings to you! We hope that you and your loved ones are safe and well. As we reflect on this past year, we are grateful to everyone connected to Howland Capital. From our clients, to our colleagues, and our industry partners, it has been a pleasure working together with you this year.