September 2022 Quarterly Market Review

Text conteThe quarter began with a short-lived summer rally that fizzled only to set new lows.
Record high inflation, aggressive interest rate hikes from global central banks, and fear of
recession left no place for investors to hide. For the third quarter, the diversified 60/40
portfolio invested 60% in global stocks, and 40% global bonds returned -6.8% and
performed worse than one just invested in global stocks (-6.7%) as global bonds posted
dismal returns (-6.9%). Within equities, US stocks sunk back in bear territory to end the
quarter -4.9%. Similarly, US bond yields which move in the opposite direction of prices,
rose to their highest levels in years as hopes for falling inflation were erased when core
inflation rose in August despite falling gas prices… (View PDF)