4 Things That Really Mattered to Your Portfolio This Year

2022's best stock and bond funds, value's big revival and where stocks are cheap [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=41222&elqTrackId=911ebe6f0e604db99fcb913c703d1a7a&elq=c41ca5db1424412888524a925b6bc927&elqaid=41222&elqat=1&elqCampaignId=19657) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week’s newsletter: - [4 Things That Really Mattered to Your Portfolio This Year]( - [5 Charts on Value Stocks’ Big Comeback]( - [Where Are Stocks Looking Cheap or Expensive?]( - [2022’s Best-Performing U.S. Stock Funds]( - [2022’s Best-Performing Bond Funds]( It’s almost over. This past week, we began wrapping up the year in investing, digging deeper into the market trends that most affected our portfolios in 2022, and looking ahead to 2023. Among the trends that we’ve been highlighting on Morningstar.com is the collapse of growth stocks, such as the big-name technology companies that had been the biggest winners in recent years. That growth stock rout was also coupled with value stocks holding in pretty darn well despite the bear market. As a result, the years-long performance advantage that growth has had over value has largely been erased. [Lauren Solberg walks us through the value-stock revival]( , and explains the lessons that it offers investors when it comes to diversification. Unfortunately, this year hasn’t brought a lot of good news to investors. With that in mind, we tried to highlight some of the bright spots with a look at the best-performing stock and bond funds covered by Morningstar analysts. The operative word there is “tried,” because in a year as difficult as this, even the best performing stock and bond funds only eked out small gains at best. Katherine Lynch has the list of [best-stock funds]( here, and [bond funds]( here. As we look ahead to 2023, where can long-term investors find opportunities to put money to work? [Jakir Hossain digs into the valuation trends of 2022]( highlighting the parts of the market that are cheap – in some cases at their cheapest valuations in decades – and which parts of still expensive. In fact, the lesson that valuations matter is one of the key takeaways that investors can learn from this terrible year. Columnist Sandy Ward offers uo four things that we all discovered – probably painfully – really mattered in 2022, lessons that we should keep in mind for 2023 and beyond. Find her article just below, and stay tuned over the next few weeks as we continue to close the book on 2022 and look deeper into the outlook for 2023. [What Investors Can Learn From a Terrible Year]( [What Investors Can Learn From a Terrible Year]( Painful lessons from the markets to take into 2023 and beyond. Sandy Ward [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Where Are Stocks Looking Cheap or Expensive?]( [Where Are Stocks Looking Cheap or Expensive?]( 7 charts on valuations as the stock market heads into 2023. Jakir Hossain [2022’s Best-Performing Bond Funds]( [2022’s Best-Performing Bond Funds]( Just about the only safe haven from rising rates were these ultrashort bond funds. Katherine Lynch [2022’s Best-Performing U.S. Stock Funds]( [2022’s Best-Performing U.S. Stock Funds]( These stock funds are the winners in recent years. Katherine Lynch [10 of the Cheapest Stocks of 2022]( [10 of the Cheapest Stocks of 2022]( One silver lining of the bear market is half the stocks followed by Morningstar analysts are now undervalued. Jakir Hossain [10 Undervalued Quality Healthcare Stocks]( [10 Undervalued Quality Healthcare Stocks]( These wide-moat healthcare stocks are trading below our analysts’ fair value estimates. Margaret Guidici [Top 6 Portfolio Moves for 2023]( [Top 6 Portfolio Moves for 2023]( While the market environment remains uncertain, there are a few key changes worth considering. Amy C. Arnott [A Retiree’s Guide to Guaranteed Income]( [A Retiree’s Guide to Guaranteed Income]( We compare Social Security, TIPS, annuities, and more. John Rekenthaler Chart of the Week [5 Charts on Value Stocks’ Big Comeback]( [5 Charts on Value Stocks’ Big Comeback]( Having been out of favor for more than a decade, value stocks have caught back up with growth. Lauren Solberg [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [10 Undervalued Wide-Moat Stocks]( These cheap high-quality stocks from the Morningstar Wide Moat Focus Index are attractive for long-term investors. Susan Dziubinski [3 Stocks Top Managers Are Selling]( Several of our Ultimate Stock-Pickers scaled back in these names last quarter. Susan Dziubinski [Top 10 Holdings of Our Ultimate Stock-Pickers’ Index]( Actively managed U.S. large-cap funds continued to lag in 2022. Ari Felhandler [What to Know About Vanguard]( The world’s largest fund company, revisited. John Rekenthaler [Morningstar’s 2022 Recommended Reading List]( Our global manager researchers share their must-reads, -watches, and -listens for 2022. Janet Yang Rohr, CFA [Why Isn’t Diversification Working?]( Actually, it is. Your portfolio just may not be diversified enough. Amy C. Arnott [Investing Insights Podcast: Stock and Bond Markets' Wild Ride in 2022]( We review what stocks and bonds'€™ down year has meant for portfolio diversification, the Fed's fight against inflation, and crypto's implosion. Morningstar Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. 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