Markets have been simply awful. The numbers presented below in the index table are exceptional, and we have not seen numbers like these since the Global Financial Crisis of 2008. I have included a few media headlines below to reemphasize this point. In addition, we are seeing that both high-quality bonds and stocks are showing significant negatives.
This is a breakdown of a fundamental assumption of asset allocation. Typically, when stocks go down significantly, bonds go up. This year, so far, we have negatives in both. This is just one of the many challenges we face managing money in 2022. Ukraine war, exceptional inflation, and Fed Policy make it extremely complicated to position a portfolio correctly.
Mike Ellis 14 July 2022. Quarterly, half year and year-end review