COTW: 2022 Market Recap

COTW: 2022 Market Recap

SUMMARY
  • 2022 was one of the worst years for markets since the 2008 Global Financial Crisis. Record-high levels of inflation and subsequent aggressive monetary policy reactions by central banks across the globe saw both stocks and bonds tumble.
  • U.S. large cap stocks ended the year down 18.1%. In the S&P 500, the energy sector is the only sector that ended the year with a positive return, up 65.7%, as sanctions on Russia led to sharp increases in the price of oil and gas. The worst-performing sector in the S&P 500 was communication services, ending 2022 down 39.9%, with many big tech companies experiencing a tough year following the post-pandemic boom in 2021.
  • Bond markets had one of the worst years in history. Since the 1920s, only one double-digit calendar year loss for 10-year U.S. treasuries had been recorded, an 11.1% loss in 2009. Now there are two, as fixed income ended 2022 with double-digit losses across the board.
Disclosures

The material shown is for informational purposes only. Any opinions expressed are current only as of the time made and are subject to change without notice. This report may include estimates, projections or other forward-looking statements; however, forward-looking statements are subject to numerous assumptions, risks, and uncertainties, and actual results may differ materially from those anticipated in forward-looking statements. As a practical matter, no entity is able to accurately and consistently predict future market activities. Additionally, please be aware that past performance is not a guide to the future performance of any investment, and that the performance results and historical information provided displayed herein may have been adversely or favorably impacted by events and economic conditions that will not prevail in the future.  Therefore, it should not be inferred that these results are indicative of the future performance of any strategy, index, fund, manager or group of managers. The graphs and tables making up this report have been based on unaudited, third-party data and performance information provided to us by one or more commercial databases. While we believe this information to be reliable, SpringTide Partners bears no responsibility whatsoever for any errors or omissions.

Index benchmarks contained in this report are provided so that performance can be compared with the performance of well-known and widely recognized indices. Index results assume the re-investment of all dividends and interest. The information provided is not intended to be, and should not be construed as, investment, legal or tax advice. Nothing contained herein should be construed as a recommendation or advice to purchase or sell any security, investment, or portfolio allocation. This presentation is not meant as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s accounts should or would be handled, as appropriate investment decisions depend upon the client’s specific investment objectives.

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