MINT HILL, NC – Last year was an exceptional year…and not in a good way!  We welcomed 2023 after having experienced a very unique 2022.  Let’s begin by looking at the following facts:

Stocks and bonds fell 10% for the first record of time.  In 2022, the Federal Reserve (Fed) raised interest rates seven times from 0.0% to 4.25-4.5% in merely 10 months. This surge in interest rates hurt both stocks and bonds. Stocks, as represented by the S&P 500 index, fell 18.1%, its worst year since 2008.  OH MY!  Meanwhile, bonds, as represented by the Bloomberg US Aggregate index, had its worst year since the inception of the index in 1976, falling by 13.1%.

That’s not the only strange thing!  AssetMark says it best, “Boring was beautiful.”  Over the past decade, fast-growing technology companies dominated returns when compared to those of more “boring” companies. That trend reversed course sharply in 2022 as investors were more focused on companies that made goods and have shown resiliency through varied economic cycles. The Nasdaq index, often synonymous with technology stocks, fell 32.5%.  This reminds us of the saying, “past performance is not indicative of future results.”

Are you basing your future on past results?

Let us help you find your clarity of purpose! 

This article was written and released by AssetMark for use by your local Cambridge Investment Research Financial Advisor.

To discuss further, please contact me at (704) 817-4480 Option 2, or by email at mmiller@fulcrumwealth.com.