Investors have lost more than $7.6 trillion on U.S. stocks this year, and experts are warning that the losses could mount heading into 2023.
From institutional investors to retail traders, it’s been a challenging year to navigate the worst-performing market in five decades, Bespoke Investment Group says.
“It is no secret that 2022 has not exactly been the year of the 60/40 portfolio,” the group wrote in a research note in August, referring to a portfolio of 60 percent stocks and 40 percent bonds. “This year has left nothing safe with both stocks and bonds hit hard.”
The Nasdaq is parked in what Wall Street calls a bear market—when prices fall 20 percent or more—as the tech-heavy index is down nearly 30 percent year-to-date. The S&P 500 Index also fell into a bear market, sliding about 22 percent on the year. On Sept. 26, the Dow Jones Industrial Average, with a decline of 1.1 percent, became the last of the major U.S. stock indexes to fall into bear territory….