Broker Check

Annual Returns

| January 03, 2023

2022 was a challenging year for investors. U.S. equities fell 19%, its worst return since 2008, while U.S. Treasuries fell 12% as the yield on the 10-year U.S. Treasury note climbed from 1.5% to 3.8%. It was a year dominated by decades-high inflation and the Federal Reserve’s most aggressive interest rate increases since the 1980s. Yet it is important to note that simultaneous declines in equity and fixed income markets is a rarity. In fact, there have been only two occurrences going back to 1974. While there is a strong potential of normal historical volatility across capital markets in 2023, this should not be confused with a view that annual returns will remain negative. We remain convicted that active management that rewards a focus on fundamentals and appropriate risk management may likely generate a positive relative performance profile for the year. As inflationary pressures further ease by midyear and as monetary policy normalizes, equity markets may begin their initial leg of the next cyclical growth cycle.


Investment advice offered through CX Institutional, a registered investment advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted.

All data is sourced from Bloomberg, through the release of monthly figures from the U.S. Bureau of Labor Statistics or from the Federal Reserve and any of its affiliated regional location.