The stock and bond markets have had a historically bad start to 2022 as investors are feeling anxious about rising interest rates, high inflation, a slowing economy and war in Ukraine. Here’s how the US bond market, S&P 500 and Nasdaq have performed so far:
The downturn has been particularly bad for growth stocks and long-term bonds, which were two categories that had huge returns over the last three years. You may have heard us discuss how these categories were performing in previous quarterly letters and commentary along with our expectation that, at some point, these categories would cool off and other categories would start to lead. It certainly appears that moment has arrived.
As many of you know, we generally don’t make predictions about how the markets will react in the short term because we know that nobody has ever been able to reliably predict short-term market movements. The good news... Read More