In 2022, investors saw few gains

Conservative News DailyJanuary 2, 2023

Investors looked for safe places to place their money in 2022. Central banks across the globe increased interest rates in the United States and other countries to combat rising inflation. This stoked fear of a global economic recession.

In 2022, investors suffer little from the market slump. The Associated PressThe Associated Press

As central banks around the world raised interest rates to combat rising inflation for the first time since years, investors found very few safe places to put their money in 2022. stoking fear of a global recession.

Inflation was a constant threat due to uncertainty over the Federal Reserve and other central banking institutions’ actions. Wall Street was subject to large stock swings as the Fed raised its key inflation rate seven more times. In addition, it signaled further increases for 2023.

Russia’s invasion of Ukraine And China’s strict COVID-19 policies This also contributed to inflation, and roiled markets in Asia, Europe, and the U.S.

Wall Street’s benchmark S&P 500 Index had its worst year in a decade since 1970, when it saw its worst start to a calendar year. In June, the S&P 500 index had its worst start to a year since 1970. he index fell into a bear marketThis is a more than 20% drop from January’s record high. Energy sector was the sole winner thanks to a rise in oil prices. After leading the market in the pandemic, technology stocks plummeted.

The cost of borrowing money increased. The 10-year Treasury yield which is a factor in mortgage rates and other loans rose to 4.22%, after being 1.51% at the beginning of the year.

Still, climbing yields in the U.S. and abroad sent prices for older bonds already in investors’ portfolios sharply lower. Fixed-income investors felt the worst from the collapse in bonds.

Cryptocurrency investors weren’t spared either. Bitcoin lost over half its value, and several high-flying firms ended up in bankruptcy.

— Alex Veiga

Here’s a look back on the key events in markets for 2022:

INFLATION AND FED

This year, inflation was the most prominent global economic theme. The U.S. gasoline prices reached $5 per gallon. Either companies raised prices or kept prices steady but put less Each package. Europe was concerned about running out of natural gas, and the prices rose faster than in the U.S.

Central banks’ response to inflation overshadowed financial markets in 2022 and could very well do so again next year. The Federal Reserve officials had already accepted that inflation was not an occasional phenomenon as the year began. Russia’s invasion of Ukraine only made things worse by sending energy and food prices soaring.

Still, it wasn’t until March, when the U.S. government said inflation had approached 8%, that the Fed acted — too little, too late for some pundits and economists. The Fed became more aggressive as the year progressed, eventually increasing rates seven times for a total 4.25 percentage point.

The U.S. seems to have seen inflation peak at 9.1% in June. As rents fell and goods prices dropped, there were some encouraging signs at year-end. The Fed’s tough inflation talk at its last meeting of this year halted the fourth-quarter stock rally.

— Chris Rugaber

Go to for complete coverage of the global economy. https://apnews.com/hub/economy

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THE BEAR ROARS

Wall Street’s brutal year left few stocks unscathed, and the vast majority fell into a bear market under the weight of fast-rising interest rates.

The S&P 500 dropped more than 20% after reaching its peak on the first trading day in 2022. Stocks that had performed best during the rally following the coronavirus collapse were the biggest losers.

High-growth tech stocks enjoyed the greatest returns due to super-low interest rates back then. In the dark of 2022, these stocks suddenly became the most costly and most vulnerable. The Fed raised interest rates to the highest levels in 15 years.

However, the pain didn’t discriminate. 7 out of 10 stocks on the S&P 500 lost their value in 2022 as of Dec. 21. Many analysts expect more pain Before things get better, it will be in the early 2023.

— Stan Choe

To see AP’s full coverage of the markets, go to: https://apnews.com/hub/financial-markets And https://apnews.com/hub/off-the-charts

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BOND MARKET BLUES

It was one of the most important. worst years in history For bond investors

Decades-high inflation meant the fixed payments coming from bonds in the future won’t buy as many groceries, gallons of gasoline or whatever else is rising in price.

The Federal Reserve’s decision to raise interest rates also hammered bond prices. Because newly issued bonds were paying more in interest, the older bonds sitting in many investors’ portfolios were suddenly much less attractive because of their lower yields.

Vanguard’s largest bond fund, which tracks the broad market, lost 12.5% in 2022. That’s by far its worst year since its inception in 1987.

In the past, bonds have performed better than stocks in downturns. This provides some protection for investors. However, both fell in 2022.

— Stan Choe

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HOUSING MARKET SLUMPS

As 2022 began, the nation’s housing market was still running red hot.

The bidding wars that drove prices up sharply resulted from the fierce competition among house hunters for the smallest number of homes available for sale in over two decades. The average 30-year mortgage rate was just above 3%, which is close to historic lows.

In an effort to curb inflation, mortgage rates began to rise. In October, the average 30-year mortgage rate had risen to over 7%. This was a twenty-year high.

In combination with rising home prices, higher mortgage rates can lead to higher mortgage rates. make it difficult Many potential buyers can afford to buy a home. Homes that were previously occupied in the U.S. saw their biggest sales slump More than a decade.

— Alex Veiga

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IS TESLA ON AN AUTOPILOT?

You can’t blame Tesla shareholders for feeling jilted.

Twitter CEO Elon Tesla took control of the company and seems consumed by turning it around. With Musk’s focus diverted, Tesla shares lost more than half their value, their biggest-ever annual. And Tesla’s dominance of the market for electric vehicles It is declining.

Most of Musk’s wealth is tied up in Tesla stock, which started falling in April when he disclosed a stake in Twitter. The collapse in the stock price has bumped Musk into second place on Forbes’ list of the world’s wealthiest people, behind cosmetic magnate Bernard Arnault.

Musk, who bought Twitter in October has now reduced its staff by half. picked fights with public officials Others.

— Tom Krisher

Go to for more coverage of Elon Musk and Tesla. https://apnews.com/hub/twitter-inc

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CONSUMERS SEE THE PINCH

Inflation is at its highest point in the past four decades. hitting consumers They can keep their money in their pockets.

Households — especially at the lower end of the income spectrum — are likely depleting savings built up during the pandemic, with more pain to come should the economy tip into a recession. Although rents rose in 2022 due to credit card debt, there are some signs that housing prices will drop. While President Biden promised student borrowers relief The courts have a debt cancellation policy that can cancel any debt up to $20,000 per year.

Although wages increased, they did not rise at the same rate as inflation. Aggressive rate hikes by the Federal Reserve The cost of borrowing money has risen due to this. But while the average rate on a credit card rose to 16.3% in August from 14.5% at the start of the year, according to the government, the average rate for a savings account is still just 0.2%; it’s 0.9% for a one-year CD.

— Cora Lewis

To get complete coverage, personal finance was to https://apnews.com/hub/financial-wellness And https://apnews.com/hub/personal-finance

UKRAINE IMPACT ON WAR

Russia’s invasion of Ukraine in February sent prices soaring for the commodities the world runs on: oil, natural gas, and wheat.

The Russian embargo on natural gas supplies caused a 17-fold increase in European natural gas prices. It led to an energy crisis which caused inflation to reach record levels. This left utilities and governments scrambling for gas to meet their winter heating season needs.

Global oil prices spiked as Western buyers shunned Moscow’s crude, sending Brent to over $120 per barrel in May. The Group of Seven democracies placed a $60 price limit on Russian oil exports and Europe banned Russian oil imports from December.

Record wheat prices led to a disastrous food inflation crisis in the poorest countries.

Year end lower prices for oil, natural gas and electricity Drivers and homeowners were able to take some relief.

Go to for complete coverage of the Russia-Ukraine conflict. https://apnews.com/hub/russia-ukraine

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CHINA DITCHES ZERO COPID

China’s economic growth and stock market slid in 2022 under pressure from pandemic controls and corporate debt, prompting the ruling Communist Party to ease off anti-disease restrictions and try to revive a struggling real estate industry.

The world’s second-largest economy shrank by 2.6% in the three months ending in June compared with the previous quarter after Shanghai and other industrial centers shut down for up to two months to fight outbreaks.

Forecasters believe annual growth could fall below 3%, one of the lowest levels in decades. To reduce economic drag, the ruling party stopped requiring businesses and supermarkets to monitor employees’ and customers’ health in order to end testing for millions. Beijing also tried to revive real estate, China’s biggest economic driver, by lending more to apartment buyers while trying to prevent a renewed rise in borrowing by developers.

— Joe McDonald

For complete coverage of China developments, visit www. https://apnews.com/hub/china

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CRYPTO’S WILD RIDE

The year began with bitcoin at $45,000 and the cryptocurrency industry making further inroads among politicians mainstream financial institutions. As 2022 ends, bitcoin is below $17,000, the industry’s “savior” Washington is attempting to regulate cryptography, while Washington is currently under house arrest

With the steady, steep decline of crypto prices The dominoes started to fall in the background with the collapse in May of TerraThe stablecoin is. Investors lost billions of Dollars and several crypto companies found themselves in financial ruin. Stepping into the future Sam Bankman-FriedFounder of cryptocurrency exchange FTX, he was a young man who rescued crypto lender BlockFi from bankruptcy and crypto firm Voyager. He has been compared to J.P. Morgan.

Those plaudits were quickly swept away when FTX crashed in November. Customers requested large withdrawals due to concerns about FTX’s financial stability. It turns out that it was underfunded and overburdened. FTX filed Chapter 11 bankruptcy protection November 11. Nov. 11. arrested in the Bahamas Extradited to the U.S. for face criminal and civil charges related to the collapsed FTX.

— Ken Sweet

To see AP’s full coverage of the cryptocurrency industry, go to: https://apnews.com/hub/cryptocurrency

THE STREAMING WARS

Netflix, Warner Bros. Discovery and other major entertainment companies suffered in 2022, as streaming services struggled amid increasing competition and rising inflation that stifled advertising spending.

Streaming services were faced with the return to normal of many people who had been locked out or restricted during the COVID-19 pandemic. The sheer number of streaming options also left companies in a fierce fight for viewers’ attention.

Netflix is streaming giant lost about half of its value after a steep drop in viewers in the year’s first half. Disney felt the pinch from lower advertising revenue, but the diversified entertainment giant’s stock held up better than most competitors.

Warner Bros. Discovery also had problems with advertising revenue. It was eventually dissolved. several films including “Batgirl” As it changed its strategy and tried to cut costs,

— Damian Troise