2022 Stock Market Re-cap

This last year in the financial markets has been challenging, with many long-term investors having had their mettle tested. As 2022 draws to a close, let’s examine how the financial markets in Europe and the United States performed.  

Compared to its performance in 2021, the S&P has performed poorly this year as it currently sits 16% down YTD with no reasonable chance of recovering those losses in 2022. However, if we examine the S&P 500’s performance since February 2020, we can see that the S&P is up 18%. Given that investors expect markets to yield a 7-9% return per year, its overall performance remains strong.  

Comparatively, the Stoxx 600 has currently returned -11% for investors. Although this is a better return than the S&P 500 this year, if we examine the Stoxx 600’s performance since February 2020, we can see that it remains flat.  

Overall, it would appear that the U.S markets continue to outperform many of the other financial markets despite the challenges faced. Do you think this trend of American outperformance will continue into 2023? 

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