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US Bonds and Stocks Experiencing Worst Year Since 1932

It has been a difficult year for investors in the United States, with both stocks and bonds experiencing their worst year since 1932.

Uncle Sam Hat with Bonds
Uncle Sam Hat with Bonds

According to a report from the Financial Times, a traditional portfolio consisting of 60% stocks and 40% bonds will have seen its worst performance in nearly a century. Tech stocks, which some believe have a correlation with cryptocurrency prices, have also had a rough year, with an index tracking the performance of US tech companies recording a loss of 35.76% for the year. Household tech giants such as Netflix, Meta, Zoom, Spotify, and Tesla have all seen their share prices fall by between 51% and 70%, according to Yahoo Finance.

The real Estate Sector Also Showing Signs of Pain

Even the typically stable real estate sector has started to feel the effects of the economic downturn. Data from the Federal Housing Finance Agency shows that US house prices were stagnant through September and October. Investment analyst Andreas Steno tweeted on December 30th that "every single asset class" was down significantly in 2022 and that the real estate sector was soon to follow.

Crypto Markets Also Struggling in 2022

While the struggles of traditional markets may provide some perspective on the current state of the cryptocurrency markets, it is worth noting that the total crypto market cap fell from $2.25 trillion to $798 billion throughout the year, representing a drop of 64.5%. Crypto billionaires have also recorded significant losses. Some of the notable crypto-related crises that have occurred in 2022 include the bankruptcies of FTX, Celsius, and Three Arrows Capital, as well as the collapse of the Terra network.