The Quarter in Review
Positive returns for stocks and bonds in the fourth quarter of 2022 gave investors a reprieve after three difficult quarters.
Stocks and bonds both rose in Q4. Although the gains were not enough to turn 2022 results from negative to positive, they kept most investors out of “bear market” territory (-20% or below).
For 2022 as a whole, stocks and bonds fell in tandem for the first time in 40 years as inflation, interest rate hikes and concerns about a possible recession weighed on investor sentiment.
We can see the effect of this in the chart below, which shows the return for a balanced portfolio that includes both stocks and bonds.
Read more in our Q4 2022 Market and Economic Update.