Bulletpoints:
• US stocks, bonds, and real estate have all experienced a difficult year in 2022, with US bonds experiencing their worst year since 1932.
• An index tracking the performance of US technology companies has lost 35.76% for the year.
• US house prices have been stagnant since September and October.
It has been a turbulent year for investors in the United States, with stocks, bonds and real estate all experiencing a turbulent and challenging year in 2022. The worst performance for US bonds since 1932 has been recorded, with the Financial Times reporting that traditional portfolio consisting of 60% stocks and 40% bonds will have seen its worst performance since the Great Depression.
The technology sector, which has been closely linked to the performance of cryptocurrencies, has also seen a significant downturn. An index tracking the performance of US companies in the technology industry recorded a loss of 35.76% for the year. Household tech giants such as Netflix, Meta, Zoom, Spotify and Tesla have all experienced particularly difficult years with their share prices falling in the range of 51% and 70%, according to Yahoo Finance.
The real estate sector, which is often seen as a ‘safe bet’, has also started to show signs of trouble. The most recent data from the Federal Housing Finance Agency shows that US house prices have been stagnant since September and October. This indicates that the US housing market is starting to struggle as the economy slows and unemployment rates increase.
The current economic downturn has been felt across the globe and investors are now looking for ways to protect their portfolios. Although the crypto markets have taken a battering in 2022, investors should not forget that traditional stocks, bonds and real estate have also experienced a difficult year. This could be a sign that the so-called ‘everything bubble’ is bursting and investors should be cautious when making future investments.