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2022- The year in review

2022- The year in review

January 02, 2023
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Hey 2022…

Goodbye, adios, arrivederci, au revoir, sayonara….

Don’t let the door hit ya on the way out!!! 

I’ve learned a few things in the last 3 plus decades working in the financial planning industry: most importantly is that the “market” can be counter intuitive at times. 

Just when you think you’ve figured things out or get too comfortable- here comes something completely the opposite of what you thought was going to happen.

2021 was a very good year in regard to both stock and bond returns with very little volatility, so of course 2022 was exactly the reverse.  

In 2021 we saw the best return for the S & P since 1984.  2022 had 4th lowest return going back to 1945.  The stock market was extremely calm in 2021, but in 2022 the S & P had the most 1% daily moves since 2009. 

Bond prices also had the worst year since 1975.  This is because the Federal reserve raised rates at the most aggressive level on par with what we saw in the 80’s.  Of course, the good news is that we have some of the highest yields we’ve had since 2008. 

Looking back to when we had a worldwide pandemic and the entire world was in a shut down, we saw real estate values and stock prices rise at an electrifying pace!

However, when the economy is booming and we are at full employment, both the stock and bond markets are losing value…… go figure. 

The lesson here is to stay the course and keep a long-term perspective, because just when you are about to give up, the unexpected will happen, and you will be rewarded for your patience. 

We are always here for you if you have any questions or concerns. 

Here’s to seeing 2022 in our rear-view mirror… 

 

Happy New Year and Cheers 

Craig