It’s a brand-new year and that means a clean slate and an opportunity for a fresh start.  Along with new beginnings comes New Year’s resolutions.  Have you reflected on the promises you made last year?  For a lot of people, the practice of making resolutions can feel like a burden followed by some disappointment.  If you still want to make a life change but want to skip the pressure of big declarations, consider a different approach. 

Here's how. 

Have you ever ridden bikes with a competitive club?

If you have, it may have gone something like this:

When you first joined the group, it probably felt like a big victory to just keep up with them for the first 15 minutes. After a while, that became the first half-hour. Then an hour.  One day, almost without even noticing it, you were suddenly able to stick with the pack for the entire ride.

It felt sudden at the time, but, of course, it wasn’t.
This is the sneaky power of incremental change.  Here’s how it works:

1. You make a small improvement.
2. That becomes the new normal, and you get used to it.
3. You make a small improvement again.
4. That becomes the new normal again.
5. Repeat.

The result of incremental change is that we barely notice we are getting closer to our goal, and then (again, seemingly “all of a sudden”) we’re there!

Chances are you didn’t feel a lot faster because you weren’t a lot faster… at least, not compared to yesterday or even last week.  But month after month, ride after ride, it all added up.  All those little bits of “faster” started to compound on top of one another.

Of course, this doesn’t just apply to riding bikes.

If you build a process of reflecting every quarter, month, and year, you’ll never feel like you’re not accomplishing anything again.  And while that may spoil some of the surprise of suddenly and unexpectedly arriving at your goal one day, it will be worth it to feel much better along the way.

This is why we hold regular review meetings together.  We know that when it comes to your financial life, big changes don’t happen overnight.  Building financial confidence requires ongoing conversations, careful monitoring, and most importantly a plan to guide you to your goals.  Let’s start this new year off right — give us a call if you have any new goals and we’ll do our best to help.

Until next week,
Your Eagle Wealth Team

Our team celebrated the holidays a little differently this year.  Our employee party was set to the theme of the holiday movie National Lampoons Christmas Vacation.   We pulled out all the stops with a costume contest and our partners, Chad and Mat, even acted out a scene from the film!  After that, we laced up our skates and hit the ice at the Seventh Mountain Resort skating rink.  Between gliding and pirouettes it was nearly impossible not to smile. 

We’re grateful for a team that knows how to work hard, celebrate the wins, and spend quality time together.
 

The Week on Wall Street

In a holiday-shortened week, erratic trading left stocks marginally down for the week.

The Dow Jones Industrial Average lost 0.17%, while the Standard & Poor’s 500 slipped 0.14%. The Nasdaq Composite index fell 0.30%. The MSCI EAFE index, which tracks developed overseas stock markets, edged 0.61% higher.^1,2,3
 

Stocks End Lower

Steps by China to move past its zero-Covid policies triggered concerns that its economic reopening might aggravate inflation pressures, sending stocks lower and bond yields higher to begin the week. Technology stocks saw the most significant hit.

With dimming prospects of a Santa Claus rally (the historical tendency of stocks to rise in the final trading days of the year and the first two days of the new year), stocks rebounded strongly on Thursday to erase the losses of the previous two days. However, stocks again turned lower to end the week with small losses.
 

Lower Risk Appetite Amid Uncertainty 

In an otherwise slow week for news, two monthly reports were released highlighting the market's headwinds. The first was State Street’s Investor Confidence Index, which measures the risk appetite of institutional investors. The December report showed the confidence of large asset managers in investing in risk assets, like stocks, has dropped over the past two months, explaining, in part, why stocks may have struggled of late.⁴

Meanwhile, the Atlanta Fed released its Survey of Business Uncertainty, which reflected both declining expectations around sales growth and employment, along with growing uncertainty about revenue and employment growth over the next 12 months.⁵ 

Disclosures and Footnotes

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.

^{1. The Wall Street Journal, December 16, 2022}

^{2. The Wall Street Journal, December 16, 2022}

^{3. The Wall Street Journal, December 16, 2022}

^{4. CNBC, December 13, 2022}

^{5. The Wall Street Journal, December 14, 2022}

^{6. IRS.gov, August 8, 2022}

^{7. Healthline, February 22, 2022}

^{Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

^{The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.}

^{The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.}

^{U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.}

^{International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.}

^{Please consult your financial professional for additional information.}

^{This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.}