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We should all know by now that an expensive stock market does not guarantee it will fall – stocks typically look expensive throughout periods of strong returns. However, a high valuation does reduce the odds an investor will earn high returns going forward. Fortunately, because of the nature of how we manage portfolios; today's higher bond yields and an expanding investment universe provide us with abundant investment opportunities outside of stocks. We believe now is an excellent time to hold some eggs in other baskets…

In 1985 David Swenson took over management of the Yale University Endowment where he pioneered an investment approach that would come to be known as "The Yale Model" and eventually be emulated by pensions, sovereign wealth funds, endowments and the ultra-wealthy.

While the rest of the investment industry is busy making predictions about the year ahead, we decided it's more important to discuss what we learned in 2023…yet another year where few predictions came true.