A Year Of Pain! Investors Struggle In A New Era Of Higher Rates And Goin’ Green, Worst Combined Stock And Bond Returns Since 1871

[excalibur]

As Joe Biden brags it was a historical year.

And tens of millions of Americans believe Biden.

We really are a dying Republic as the 2022 elections, outside of Republicans narrowly winning the House proved. Seriously, they re-elected Pritzker and Whitmer.

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2022 is one of the record books and not in a Tiger Woods way. Call it a year of pain.​

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First, the US enacted policies that drove up energy prices (goin’ green) that reverberated through the entire economy in the form of higher prices. Second, The Federal Reserve, in attempt to combat runaway inflation, started removing the excessive monetary stimulus that had been around since Fed Chair Bernanke initiated QE, the seemingly unlimited purchase of Treasury and Agency MBS securities. Janet Yellen continued the massive asset purchases and zero interest rate policies or ZIRP. Now that inflation has struck the American middle class hard, we are seeing Fed Chair Powell doing what Bernanke and Yellen wouldn’t do — remove the monetary punchbowl.​

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Using Robert Shiller’s on line data, US stocks and bonds have had an awful year, the worst combined year since 1871.​

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US equity returns have been demolished under the NEW dual mandate (goin’ green = rising prices = Fed tightening).​

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Let’s see how two of the most famous investment gurus did in 2022, Warren Buffet and Cathie Wood. Buffet’s Bershire Hathaway Class A equity was UP 4% in 2022, while Cathie Wood’s ARK Innovation ETF collapsed by -67% in 2022.​

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A Year Of Pain! Investors Struggle In A New Era Of Higher Rates And Goin’ Green, Worst Combined Stock And Bond Returns Since 1871 (Buffet’s Berkshire Hathaway Was UP 4% In 2022, Cathie Wood’s ARK Innovation Was DOWN -67%)

2022 is one of the record books and not in a Tiger Woods way. Call it a year of pain. First, the US enacted policies that drove up energy prices (goin’ green) that reverberated through the en…

confoundedinterest.net

 

[occupied]

Investment in securities involves the risk of loss.

 

[1srelluc]

WTF you talkin' about?....The dems say all is well.

Then again everything out of a dem mouth is a lie so.....

 

[Yarddog]

Investment in securities involves the risk of loss.

and leaving your money in cash involves the risk of loss.

 

[DudleySmith]

Gamblers always lose more than they win; most aren't 'investors' they're just suckers begging to be fleeced. Wall Street is run by carnies.

 

[Kilroy2]

The Historical Performance Of Stocks And Bonds

There’s a reason financial advisors tell you to ignore the noise. Follow the stock market closely enough and you can easily fall into a dizzying sea of numbers and narratives. Stocks are undervalued! No, everything is expensive! Wait, here comes inflation! Today’s darlings (ahem, Tesla) can turn int

www.forbes.com

chart last date is 12/22

Stocks fall to end Wall Street's worst year since 2008, S&P 500 finishes 2022 down nearly 20%

The major averages snapped a three-year win streak to end their worst year since 2008.

www.cnbc.com

yes they fell but its not the end of the world. 2008 was the worst year drop in modern times.


There was COVID issues, the invasion of Ukraine that created issues but in the end it what is the FED going to do.

The DOW and S$P were up and thank god for energy

Stocks fall to end Wall Street's worst year since 2008, S&P 500 finishes 2022 down nearly 20%

The major averages snapped a three-year win streak to end their worst year since 2008.

www.cnbc.com