The worst year for US stocks and bonds since 1932 has come to an end.
It’s been a rough year for investors, and not just those in crypto. U.S. bonds have had their worst year in hundreds of years, and U.S. stocks have dropped nearly 20% since the start of 2022.
As of November 30, a report from the Financial Times said that a traditional portfolio with 60% stocks and 40% bonds had done the worst since 1932, when the U.S. was in the middle of the Great Depression.
The average return on stocks and bonds in the US from 1871 to 2022 The Financial Times is the source.
Some people think that the price of cryptocurrencies is linked to the price of tech stocks, which also haven’t had a great year.
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An index that measures how well U.S. companies in the industry are doing lost 35.76% for the year.
Yahoo Finance says that the share prices of well-known tech companies like Netflix, Meta, Zoom, Spotify, and Tesla have all dropped by between 51 and 70% in the past few years.
Even the “safe as houses” real estate market is starting to hurt. The Federal Housing Finance Agency’s most recent report shows that U.S. house prices were flat in September and October.
return for an index that tracks the stock performance of U.S. technology companies in 2022. S&P Dow Jones Indices is the source.
With the total crypto market cap falling from $2.25 trillion to $798 billion, which is a drop of 64.5%, and crypto billionaires losing a lot of money, these stock and sector drops may help put the current crypto winter into better perspective.
Some of the crypto crises that have happened in 2022 include the collapse of the Terra network and the failures of FTX, Celsius, and Three Arrows Capital.
Andreas Steno, an investment analyst, said on Dec. 30 that “every single asset class” is going down a lot in 2022, and real estate is next.