The 2023 Market Outlook, Ep #135

<p>What does your dream retirement look like? What will make you happy? What are you working to achieve? Your goals don’t have to sound good to other people. They’re <em>your</em> goals. They’re based on your dreams. To reach your dream retirement, you have to figure out what you want and set specific goals to get there. </p> <p>You also can’t let emotions rule your decision-making. In this episode of the Retirement Made Easy podcast, I’ll share some insights from Vanguard and LPL financial’s 2023 market reports. But no matter what these reports tell you, you <em>have</em> to follow the long-term plan you’ve created to reach the retirement of your dreams. </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[0:33] What does your dream retirement look like? </li> <li>[6:48] 2023: Starting with layoffs and unemployment </li> <li>[10:48] Vanguard believes a recession is coming</li> <li>[13:51] Short-term emotions negatively impact long-term results </li> </ul> <h2>2023: Starting with layoffs and unemployment</h2> <p>There were a lot of layoffs this month (January 2023) and they will likely continue throughout 2023. Google, Microsoft, and 3M had significant layoffs. </p> <p>Mike Row interviewed the economist, Nicholas Eberhart, about the job situation and unemployment pre-pandemic and post-pandemic. Right now, there are 7 million men ages 25–54 who are not working or looking for work. They’re <em>not</em> included in unemployment figures. We’ve never seen anything like this.</p> <p>We have 4 million more open jobs versus pre-pandemic and 4 million fewer people in the workforce. As of November 2022, there were 10.5 million jobs available. We can’t look at unemployment numbers accurately because we have so many people who aren’t even looking for work. </p> <h2>Vanguard believes a recession is coming</h2> <p>In Vanguard’s market outlook, they’ve stated they believe there’s a 90% probability that the United States will enter a recession this year. Recessions slow down the economy. Compani