From Chief Investment Officer Tom Veale,
Happy New Year to all. 2022 proved to be a challenging year for investors and advisors. We, at SignalPoint, have a motto, “Buy from the Scared, Sell to the Greedy” as an abbreviated description of our portfolio management process. When markets are in distress we use reserves of cash put aside during more generous times to rebuild share inventories. That sums up 2022 fairly well. Our Portfolio Strategies did have some bright spots as the Energy sector surged last year. It generated 5 inventory reductions with just two inventory expansions. Early in the year the Basic Materials sector rose enough to trigger a 5% reduction in share inventory but then dropped in price enough to offer two buying opportunities. Most other sectors were net buyers for the year. Here’s how our U.S. Domestic Strategy looked at the close of the year.
We start 2023 with a lower risk profile than last year.