Perhaps the only thing investors can take for granted is this: 2022 is finally over. There was nowhere to hide last year. Investors face declining prices on the equity and fixed income side of their portfolios. The iShares Core Growth Allocation ETF (AOR), which is based on a 60/40 split between stocks and bonds, shed 17% last year and hurt investors. After all, bonds are supposed to offset the volatility of stocks and provide some buffer for investors. It was also the worst year for the three main indexes – S & P 500 , Dow Jones Industrial Average and Nasdaq Composite – since 2008. But if you are reading this – you have arrived. Despite the pain of last year, there are some investors who can buy from the market and carry it into 2023. “One thing I think about is how resilient investors were when they navigated last year,” said Callie Cox, an investment analyst at eToro. “Pat yourself on the back. You hold on if you’re done this year – even if [you] don’t realize.” Here are three useful lessons for investors after 2022. 1. Diversification. Not all tools work in every environment. Potential. Try the Invesco QQQ Trust ETF (QQQ) and how it rose about 48% in 2020 and added about 27 % in 2021. When tech giants like Google and Amazon collapse in 2022, the ETF is down 33%. “Not all tools work. in every market environment,” said Cox. “Many investors saw high rates, high inflation years for the first time since the 1980s. And if we think about it [2023] also, still high level, high inflation environment. that same mentality draws investors to dividend-paying stocks and funds that have these fundamental names, such as Vanguard’s High Dividend Yield Index ETF (VYM) . – but still far from the S & P 500. Names held in VYM include blue-chip stalwarts like Johnson & Johnson, Exxon Mobil and JPMorgan Chase. 2. There is power in cash When the market is volatile, cash liquidity is even more valuable. For one thing, it’s enough to ensure you won’t dump your stock at the worst possible time. It also gives you the flexibility to shop for discounts when your favorite names are on sale. Be smart about how you spread your money, especially now that interest rates are higher. Don’t forget that six-month and one-year Treasury bills yielded 4.7% on Friday. “People get comfortable with zero percent cash, but they’re giving it up to be smarter,” says Jamie Hopkins, managing partner of wealth solutions at Carson Group. “There are many opportunities for next year.” Ultra-short duration ETFs one possibility to consider, he said. See below for a table of some offers, and remember the fee conscious: Do not forget that the Series I savings bonds issued from November 1, 2022 to April 30, 2023 offer a current interest rate of 6.89%. One individual can purchase up to $10,000 per calendar year through TreasuryDirect. You must hold the I bond for at least 12 months before you can redeem it. If you cash out before reaching the five-year mark, you’ll lose the last three months of interest. 3. Remember your goals Last year felt like it would never end. But one year may not be the best way to measure your end goal as an investor. When investors focus too much on short-term events, it becomes very easy to chase trends and warrant stocks. “It’s hard to pick one stock and ride it through,” said Hopkins. “It’s a lesson that goes on.” What does help, though, is making a plan to help you remember your motivation even when times are volatile. This way, you not only have the money you need to be happy, but you can also get cheap stocks with long-term potential. Your plan should also look beyond the value of your assets. Tax planning, investment costs, and adequate liquidity are all factors to ensure you reach your goals, Cox says. “Planning ahead is always important, but it’s especially important in unstable times,” he said.