Year end values 2022

[Walkeia]

I enjoyed reading last year's posts and having seen a couple of post on this topic I thought I'd create a thread so they can be in one place. Perhaps performance and a couple of comments on your thought's for 2023

My portfolio is up 1% total return; low was down 9% (mid Oct) and high was +3% (mid-August) - I was down most of the year but the weak GBP helping my overseas holdings, a significant investment into a UK index linked gilt in the Truss crisis and a few well timed buys made a big difference to my returns. My case is very much 'what a difference a year can make' regarding my investment thinking. At the start of 2022 I was thinking 80% passive equity ETF portfolio and 20% income investment trusts / REITS portfolio but as it became apparent how high interest rates were going to go I significantly boosted cash holdings & sold two investment properties. As assets classes I had long discounted got to levels I found attractive I've bought things I never expected I wish to. I now have the most diversified portfolio I have ever had.

Looking to 2023; I agree with a recent article (I think it was from PIMCO) which said the last decade was 'all roads led to equities', due to the pricing of other assets such as credit, government bonds, but that this is arguably changing in the current market regime given the rise in interest rates. So I continue to sit with a significant cash holding expecting a recession and hoping to buy dips in the SPX with the aim to be fully invested if we get to the low 3000s. But my target equity allocation is lower and I have other asset classes I am watching - for example I also added some XAT1 in Oct at close to a 9% YTM which I like as an income play.

Net, my over arching thoughts are hiking cycles have often ended in a mess. I don't see why this one is different despite people saying to me what about the covid cash savings etc. The UK may be a basket case but the biggest drop in real incomes on record in 2022 followed by the 2nd biggest in 2023 - I just don't see how this translates to buoyant asset prices and a good outlook for the economy.