Chart of the Day - Friday, September 2nd, 2022
September 2, 2022
Today’s Chart of the Day was shared by Bespoke (@bespokeinvest). The chart shows the annual performance of a traditional 60/40 Stocks/Bonds portfolio over the past 45 years. The S&P 500 is down -17.7% YTD, marking the 4th worst start to a year ever. To make matters worse, Bonds are having their worst year....ever. The whole purpose of a 60/40 portfolio is to have exposure to Bonds in order to cushion stock market volatility, but that clearly hasn't been the case this year. Bespoke points out that this has been the worst start to a year for the 60/40 portfolio since 1976. Most long-term investors have never seen this sort of carnage. Will 2022 have a lasting impact on investors' risk appetite in the coming years?