Third Quarter 2022
Investors understand that markets go up and also go down. After being treated to better- than-average returns for over a decade, 2022 has been a year that has tested even the most seasoned of investors. This year, investors have experienced frequent bouts of market-moving news, combined with reports of slowing economic growth, elevated inflation, and weakening fiscal and monetary stimulus. In response, by the end of the third quarter the S&P 500 index tumbled more than 22% from its record high, and bonds have lost around 14% since January. Investors have seen huge market volatility in response to many reports including those on monthly inflation, jobs numbers and every utterance of Federal Reserve officials. With that type of backdrop, it can be easy for investors to get caught up in the here and now.