Fixed Income: 2022 Review + 2023 Preview

by | Jan 9, 2023 | Market Updates

2022: Unprecedented in Modern Market History

 

For only the third year since 1926, both US stocks and bonds lost money (the other two occurrences were … 1931 and 1969. The 60/40 portfolio simply didn’t work. While this might not be new news, we believe it is important when piecing together a plan of attack into the new year. We’ve become accustomed to risk free yields moving DOWN when risk premiums move however this year, they’ve both moved UP in tandem. While inflation might have peaked, the level it settles down to will be important in considering how asset classes correlate (stock/ bond relationship) into the future. Past performance might not be indicative of future performance.

 

Source: Bianco. As of 12/31/22.

In lieu of posting all 34 charts here, grab the full chart book PDF here.

 

Disclosures

 

Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward looking statements cannot be guaranteed. 

This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible. 

The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers.  

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