Chart of the Day - Friday, December 16th, 2022

Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). It's a chart of the S&P 500 since its inception in 1950, along with US Household Equity Exposure. With just 9 trading days to go, the S&P 500 is down more than -19% YTD, putting it on track for its worst year since 2008. Despite how painful this year has been, Willie points out that US investors have hardly reduced their exposure to stocks. Exposure reached extreme levels last year, and it remains historically elevated. Are investors in denial? As you can see, excessive exposure led to a lost decade for the S&P 500 in the 1970s and early 2000s. Could we be in for the boring '20s?