January 19, 2023 | Investment Review

Investment Review - January 2023

  1. The major U.S. stock indices moved lower in December. The Dow Jones Industrial Average decreased by 4.17%, the S&P 500 was down 5.90%, and the Nasdaq Composite declined 8.73%. All three major indices had their biggest yearly losses since the financial crisis in 2008.

  2. The Fed’s rate hikes did a number on bond prices, as they lost over 12% of their value in 2022 (as measured by the Bloomberg U.S. Aggregate), marking the largest decline in decades.

  3. The yield curve will end the year inverted, as 2-year Treasury yields of 4.42% are substantially higher than 10-year treasury yields of 3.88%. This inversion, the largest in forty years, is a classic recession warning sign from the Treasury market.

Key Investment Statistics

key investment statistics january 2023

Source: Factset, Federal Reserve, Federal Reserve Bank of St. Louis, Freddie Mac, U.S. Department of Commerce, U.S. Department of Labor

Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.

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