Milan Cacic
July 15, 2022
Financial literacy Social media Economy Commentary In the news Trending Weekly updateSOME INTERESTING CHARTS
2022 has been an interesting year. They say a picture is worth a thousand words so I thought the charts below would do a better job describing this year than I could with words.
The first chart below shows the returns of both bonds and stocks for every year since 1989. The horizontal axis represents the return of the S&P 500 as a percentage for each calendar year and the vertical axis represents the same, but for bonds. For example, in 1995 the S&P 500 index was up approximately 38% and the bond index was up approximately 19%. In the first half of 2022, we can potentially see for the first time since 1989 where both bonds and stocks close off the year in negative territory. Needless to say, the first six months of 2022 has been unusual!
The second chart below shows that the first half of 2022 was the worst start since 1970. It also shows that historically, when the first half of the year is terrible, the second half of the year tends to be very good. Statistically speaking, when the first six months of the year have a return equal to or less than -15% the second half of the year has returned a positive 23.7%. Hopefully history repeats itself again.
I have also included a piece from our CIBC Economics team entitled "Good policy or good luck(The Week Ahead)".
I hope everybody is having a good time at the Stampede this year.
Have a great weekend.
Milan