cooling inflation. rates peaked. Is it time for the market to go up?

Inflation has finally subsided, and interest rates may soon peak. That means now might be a good time to get back into the market — even with a potential recession looming, some strategists say.

Forty years of high inflation and the sharpest interest rate increases by the Federal Reserve since the 1980s weakened people’s wallets last year. Stocks and bonds, which usually move in opposite directions, fell simultaneously, leaving the diversified classic 60%/40% bond portfolio, or 60/40, in disarray and investors with nowhere to hide. Morningstar’s US Target Average Allocation Index — designed as a benchmark for a 60/40 allocation portfolio — lost 15.3%, the largest annual decline since 2008.

But some say 2023 is on a different path, giving investors hope that they can begin to rebuild their retirement balances.

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