09 Jan COTW: 2022 Market Recap
- 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.
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