January 2023

2022 ended as one of the worst calendar years on record for investors, with U.S. large cap stocks declining by just over -18% and investment grade bonds sliding by -13%. While equity market declines weren’t necessarily an outlier, bonds were another story. The -13.01% loss for the benchmark Bloomberg Aggregate Bond index was by far its worst annual decline in its history, dating back to 1976, equating to a near 3 standard deviation event.