What a Year It’s Been!
No doubt most investors will be pleased to finally have 2022 behind them. Throughout the year, much was made of the downturn in equity markets – and rightly so, with the S&P 500 ending the period down almost 20%. But we can’t forget the bond markets, which were ravaged by rate hikes during the year. The Canadian Universe Bond Index, which includes over 900 different bonds and had posted positive returns almost every year for decades, slumped 11.7% in 2022. As a result, there is no safe haven for investors looking to count on a balanced portfolio. Fans of portfolios built on an asset allocation of 60% in equities and 40% in bonds – the traditional portfolio – suffered major, almost unprecedented losses.