Financial experts with The Sanibel Captiva Trust Company’s Investment Management Team held a 2023 Economic Outlook event that offered a global economic overview and investment strategies worth considering in the new year for clients and friends.
The luncheon at Broadway Palm Dinner Theatre was the firm’s first event in Fort Myers for Sanibel and Captiva residents displaced from the storm and clients throughout Lee County. The company recently established a location in the city after Hurricane Ian.
Founder and Chairman S. Albert D. Hanser, along with Lee County Market President and Wealth Services Advisor Jeffrey A. Muddell, CFP, welcomed more than 100 attendees with a recap of 2022’s financial highlights and the company’s successes, as well as insight into what’s ahead for the economy in 2023.
“So much happened in 2022 – inflation and interest rates spiked, housing prices soared, stocks went up and down, cryptocurrencies collapsed, unemployment rates dropped, political tensions continued,” Hanser said. “For 2023, investors should keep medium- and long-term gains in mind. Slow and steady wins the race.”
The Sanibel Captiva Trust Company created the annual Economic Outlook to share exclusive insights and market knowledge with clients and potential clients who have at least $2 million in investible assets. The firm serves high net worth investors who rely on wealth management services to protect, grow and perpetuate their families’ assets.
Many investors question whether now is the time to sell and “cash in” in case the market dips. Advisors, however, caution against that strategy.
“You should not try to time the market,” said Gary W. Dyer, CFA, senior vice president and senior portfolio manager. That’s why it makes sense for many investors to purchase stocks in trusted, established brands and companies that have been industry leaders for generations. “You buy something for a longer return and let it grow,” Dyer said.
Edwin C. Ciskowski, CPA, senior vice president and senior portfolio manager, addressed one of the biggest economic issues of 2022 – inflation.
“We have more job openings than we have people willing to fill those jobs,” Ciskowski said. “It’s forcing companies to pay more for labor, and that’s driving inflation.”
Ciskowski noted job reports showing in excess of 10 million vacancies nationwide, which Craig. J. Holston, executive vice president and senior portfolio manager, noted reflects a mismatch between job skills of individuals in the labor pool with skills that businesses are requiring. Balancing the equation will require retraining of the workforce, an initiative that takes time to resolve.
Looking ahead to 2023, Holston is optimistic about the U.S. economy and stock market, and bonds should remain attractive because of elevated interest rates. Potential volatility in the market, Holston notes, should force investors to heed traditional valuation metrics and put their money into proven, long-lasting companies. That strategy is often a safer choice than investing in cryptocurrencies or tech startups, which can generate quick returns but also come with significant risk.
“You can’t value it,” Dyer said of some newer companies and cryptocurrencies. “You have no idea what it’s worth.”
Overall, stocks should see a steady climb for the next few years.
“More than likely, we’re going to do OK,” Holston said.
The Sanibel Captiva Trust Company also is continuing its complimentary women’s luncheon series “Wisdom of Women” as well as the 2023 Speakers Series. Topics of the women’s series include philanthropy, estate planning, pioneering and more. Topics for the morning speaker symposium include economics, investing, estate planning and lifestyle trends. For dates and full information, please visit www.sancaptrustco.com/2023SCTCspeakerseries or contact Frances Steger at firstname.lastname@example.org or call 239-472-8300.
About The Sanibel Captiva Trust Company
The Sanibel Captiva Trust Company is an independent trust company with $3.6 billion in assets under management that provides Family Office and Wealth Management Services, including investment management, trust administration and financial counsel to high-net-worth individuals, families, businesses, foundations and endowments. Founded in 2001 as a state-chartered independent trust company, the firm is focused on wealth management services that are absolute-return oriented and performance driven. Each portfolio is separately managed and customized specifically to the client’s yield and cash-flow requirements. The Naples Trust Company and The Tampa Bay Trust Company are divisions of The Sanibel Captiva Trust Company. Offices are located in Sanibel, Fort Myers, Naples, Marco Island, Tampa, Belleair Bluffs and Tarpon Springs. For information, visit SanCapTrustCo.com.