Where to Invest to Kick Off 2023

Plus: 15 charts on an extreme year for markets, a reassuring jobs report kicks off the new year. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=41398&elqTrackId=ae08a1ff91bc4a81bf909bb2329eeca5&elq=aa4868f6a1dd4694972763ce57d69f88&elqaid=41398&elqat=1&elqCampaignId=19759) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week’s newsletter: - [15 Charts Explaining an Extreme Year for Investors]( - [33 Undervalued Stocks for Q1 2023]( - [2023 Stock Market Outlook: Near-Term Turbulence, but Clearer Skies Ahead]( - [December Jobs Report Offers Good News: Easing Wage Pressures, Healthy Economy]( - [3 Great ETFs for 2023 and Beyond]( As investors, we can definitely say, “2022, you come back no more]( This past week we wrapped up our 2022 year-in-review coverage and kicked off 2023 with Morningstar’s outlook across the markets on where to invest this year. But pace yourself; we’ve got a lot to offer. The Year That Was Starting off by looking back, we’ve got Lauren Solberg’s [blow-blow on performance]( across and within the stock and bond markets, as well as crypto and commodities. If you’re a glutton for bad news, our team [catalogued the “worst since” and “worst ever” records]( set across the markets and mutual fund performance in 2022. Jakir Hossain looked at [the best- and worst-performing stocks]( on Morningstar’s coverage list (yes, some stocks went up!). Next Katherine Lynch digs into how the most [widely-owned stock funds fared in 2022]( and how the [biggest bond funds performed](. For a broader look at fund performance, Gregg Wolper looks at the [overall damage across stock funds]( and Peter Marchese, look at how a fourth-quarter rally was [cold comfort for battered bond-fund investors](. Where to Invest Now? The question is, of course, now what? We started the new year with some reassuring news on the economy. The December jobs report offered an almost-goldilocks scenario of solid job growth and easing wage pressures, helping provide more comfort on the outlook for inflation. You can find the Morningstar take on the [jobs report here](. Looking further out, Morningstar’s chief U.S. market strategist Dave Sekera [offers up his 2023 stock market outlook]( predicting a bumpy ride in the near term before the backdrop begins to improve. You can also find Dave’s outlook on the bond market and where the [opportunities lie in fixed income, here](. Among individual stocks, Susan Dziubinski combs through Morningstar’s coverage list to find [33 undervalued stocks]( that are our analysts’ top picks in the first quarter. For exchange traded-funds, Bryan Armour [highlights 3 ETFs]( that should serve investors well in 2023 and years to come. And [Russ Kinnel has his 2023 mutual fund picks here](. But we’ve got a lot more, including stock-sector outlooks from Morningstar analysts and tips on the most important steps to take with your portfolio as we head into 2023. Click just below to find our complete year-end and year-ahead coverage. [2022 Year in Review and 2023 Market Outlook]( [2022 Year in Review and 2023 Market Outlook]( Our analysts and specialists put 2022′s trends for stocks, bonds, and funds into perspective—and look to the future with a fresh market outlook update. Morningstar [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [15 Charts Explaining an Extreme Year for Investors]( [15 Charts Explaining an Extreme Year for Investors]( We look back at a brutal year in stocks, bonds, and crypto. Lauren Solberg [Tesla: A Stock for Our Times]( [Tesla: A Stock for Our Times]( The company’s shares illustrate the market’s past excesses—and, perhaps, its future promise John Rekenthaler [Morningstar’s Best- and Worst-Performing Stocks: 2022]( [Morningstar’s Best- and Worst-Performing Stocks: 2022]( Chinese stocks rebound, energy stocks such as Occidental surge, while Farfetch and other internet retailers plunge. Jakir Hossain [December Jobs Report Offers Good News: Easing Wage Pressures, Healthy Economy]( [December Jobs Report Offers Good News: Easing Wage Pressures, Healthy Economy]( Fed seen able to further slow rate increases in February. Lauren Solberg [How the Largest Stock Funds Performed in 2022]( [How the Largest Stock Funds Performed in 2022]( Total market funds lagged, while value and dividend-focused strategies remained buoyant. Katherine Lynch [33 Undervalued Stocks]( [33 Undervalued Stocks]( Here’s the new list of Morningstar’s top analyst picks for Q1 2023. Susan Dziubinski [How the Largest Bond Funds Did in 2022]( [How the Largest Bond Funds Did in 2022]( Rising rates inflicted record losses on the most widely owned bond funds, but some actively managed bond funds fared somewhat better. Katherine Lynch Chart of the Week [Just How Bad Was 2022’s Stock and Bond Market Performance?]( [Just How Bad Was 2022’s Stock and Bond Market Performance?]( We’ve collected a list of ‘worst ever’ and ‘worst since’ records set across the markets on individual stocks and funds. Tom Lauricella [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [Best of The Long View 2022: Investing]( Some of our favorite clips from interviews with portfolio managers and investment specialists in 2022. Christine Benz [7 Great Investing Books for Beginners]( Want to get smarter about investing? Check out some of these books. Carole Hodorowicz [Contrarian Picks for 2023 and Beyond]( There are likely some future winners in these out-of-favor growth and fixed-income funds. Anthony Thorn [TIPS vs. Balanced Portfolios for Income: The History]( 2 ways to seek rising payouts. John Rekenthaler [The Best 529 Plans for 2023]( These plans earn Morningstar’s highest rating. Susan Dziubinski [Important Tax Changes in 2023]( Inflation is driving higher limits on retirement plan contributions this year, but it’s also lifting the amount of income that’s subject to Social Security tax. Christine Benz Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. 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