The Only 4 Strategies That Worked in 2022 – and Will Work in 2023

New Year is in just a couple days. We spent Christmas in my house noisily with one of my two granddaughters in attendance, with a prime rib roasting away. As is tradition, my wife had the TV tuned to a station that plays seasonal tones while the screen is filled with a roaring fireplace.

Now we’re heading to Orlando to my son and his wife’s house for Christmas part two, with our youngest granddaughter. To keep our New Year’s tradition alive, we will swap the prime rib for a pork roast and black-eyed peas.

As we ring in 2023, many investors will feel thankful that 2022 is over. Unfortunately, this year has not been much fun for traditional investors.

For less conventional investors, things looked much better…

If you bought into the Wall Street story and used low-cost indexes, or if you formed your portfolio along the suggested 60% stocks and 40% bond allocation, you have gotten waxed.

What worked in 2022 was unconventional thinking:

  • Those who invested in heavily discounted closed-end funds that own a lot of energy-related assets have done well in 2022.
  • Buying high-yielding bank stocks during market sell-offs has worked out OK as well.
  • Ignoring electric vehicles and renewable energy and buying fossil fuel-related stocks has turned out to be a brilliant strategy.
  • Heeding the late, great Marty Zweig’s old Wall Street adage, choosing not to fight the Fed was just as reliable a piece of advice this year as it always has been.

Buying stocks that trade below liquidation value has always been a winning strategy and is again this year. If you followed this approach, there would have been no wonderful, world-changing technology stories to tell around the water cooler about your 2022 portfolio.


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