Market Update Fall 2022
Stocks and bonds posted their third consecutive quarter of negative returns, as aggressive monetary tightening has taken a toll on equity and fixed income valuations. The S&P 500 Index is down 24.9% Year-to-date (YTD). The conventional “all weather” 60% Equity/40% Fixed-Income portfolio is down 20.1% YTD according to Morningstar – worst on record. Higher rates have adjusted valuations down for both stocks and bonds closer to normal levels associated with slow economic growth.