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bymuratdeniz/iStock via Getty Images Not much worked in 2022. That is no surprise to anyone who has studied investment returns and economic environments. The only reliable sector for positive returns in a surging inflationary environment is energy. Also, a basket of commodities is known to be the most reliable and most robust inflation hedge. Commodities delivered in 2021 (exponentially) and in 2022. And due to the rising rate environment duration mattered. Long durations assets such as long bonds and growth stocks were hit hard in 2022. Value stocks, often found in the bigger dividend payers, outperformed the market in 2022. 2022 was impossible to predict. We had another ‘black swan’ with the unfortunate and tragic invasion of Ukraine. And you might suggest that it was not a black swan event, as war is a ‘normal’ part of human and political behavior. So call it a dark grey swan perhaps. A war in Europe was certainly not expected. It changed and shaped everything. Heading into 2022 I wrote in a post… Barring any black swan event, 2022 might shape up to be a solid year for investors. (A black swan is an unpredictable and catastrophic event, such as the pandemic.) […]
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