Talbot Financial – 4Q 2022 Review

2022 was a historically difficult year for the financial markets driven by higher inflation, rising interest rates and continued aggression by Russia in Ukraine. The stock market, as measured by the Index, declined 18.1% for the year, marking the worst one-year calendar return since 2008 and the fourth worst calendar year return since the Great Depression. Results were similar with both International and Emerging Market stocks. The bond market, which historically provides support during periods of equity volatility, did not fare much better than the equity markets. The Barclay’s U.S. Aggregate Bond Index, widely considered a proxy for the U.S. bond market, declined 13.1% for the year, its worst annual performance in its 50-year history.